What is mobility?

From real estate to antique collections to cash in the bank, there is liquidity in every asset. No matter how stable it is, it can be converted into cash on hand, which is asset liquidity, I .e. the speed at which assets are converted into funds and the closeness of the converted value to their original value.

Where have you heard of liquidity?

Recall that in 2013, the UK's financial regulator approved new rules on the minimum amount of liquid assets that all banks must hold, for the first time in history. The incident, which occurred after the collapse of Northern Rock and Lehman Brothers, was designed to ensure that banks could quickly convert assets into funds. You can start from here. Learn more.

The information you need to know about mobility...

You can think of an asset's liquidity as its ease of being "available" funds. Shares and stocks can be converted into usable funds very efficiently and are therefore liquid assets. This does not mean that they will maintain their value, because the value when you decide to sell is the actual amount you quickly exchange for cash.

On the other hand, real estate is a non-current asset because it is difficult to convert quickly into funds without devaluing.