Liquidity Of Assets

Definition of "Liquidity of assets"

Financial holdings that can be converted into cash in a timely manner without the loss of principal, such as U.S. Treasury Bills. Liquidity of assets is one of the most important principles of investment strategies, especially the first layer of an investment portfolio. Life insurance is generally placed in this first layer because of its cash value. The owner has complete liquidity since it can be used as collateral for a loan a any time.

Search Real Estate Glossary

Related Real Estate Glossary terms

Deficiency Reserve

Addition to reserves of a life insurance company required by various states because the valuation pr ...

Ownership Form

Methods of owning real estate. Ownership form has important consequences for income tax, estate tax, ...

Succession

transfer of real property by legal means such as through inheritance. ...

Cestui Que Trust

Trust beneficiary of an individual who is legally entitled to the property and financial benefits of ...

Parking Area

Space reserved for specified vehicles. For example, an office building may have space available for ...

Rent Bid Model

Depicts the best way to allocate land to maximize usefulness and profitability. ...

Related Real Estate FAQ

What Is An Annuity?

An annuity is a long-term, interest-paying contract offered through an insurance company or financia ...

What Is A Contingency?

A contingency is a provision included in a sales contract stating that certain events must occur or ...

What Will My ARM Loan Payment Be ?

RealEstateAgent.com calculator will compute your initial payments and estimate your future payments. ...

What Is An Easement?

An easement is the right given by the landowner to use the property. ...

What Is A Quit Claim Deed?

A quit claim deed is a formal document that denies a claim to a certain property. Often used to clea ...

What Is A Gift Letter?

A gift letter is when an individual gives you money for a down payment as a gift, that person must w ...

Read why Real Estate Agent rates 5 Stars in 10 Agent Reviews

Agents join here

Add our widget on your Website

Real Estate Advice

Build or Buy? That’s the Big Question Real Estate Open House - The Dos and Don What is Earnest Money Foreclosure - The Pros and Cons of Buying Tax Breaks for the First Time Home Buyer

FAQ

What is a seller disclosure? What are the Benefits of Liability Insurance? What is a debt-to-income ratio? What is a cap? How can I protect my Home Office?