Liquidity

How quickly an asset can be converted to cash without affecting its price.

Liquidity describes the ease with which an asset can be bought or sold in the market without causing a significant price change. Cash is the most liquid asset. Real estate and private equity are illiquid. High liquidity generally means tighter bid-ask spreads and lower transaction costs.

She kept part of her savings in cash for liquidity, so she could cover emergencies without selling investments.