No, they don’t. Liquid assets don’t increase in value. If they had $1 in cash seven years ago, it would be worth less than that today due to inflation.
I’m pretty sure that liquid assets are things that you can spend, so cash and bank accounts. Anything that you have to sell to buy things is not a liquid asset. (Note that we are not talking about barter. I had a friend at college who traded a snake for a VW camper, neither of which would be considered a liquid asset. Even though technically you could put the snake in a giant blender…)
No, a liquid asset is one that can be sold quickly for its full market value.
For example, if you have stocks worth $100K, you can quickly convert them to $100K in cash. Whereas real estate is not liquid, because you usually cannot quickly convert a house worth $100K into cash.
Some people make a distinction between “liquid assets” and “near-liquid assets” and would classify something like a money market account (which also does grow in value as many liquid assets do) as a liquid asset, and maybe some forms of stock as near-liquid assets…but I’m splitting hairs.
No, they don’t. Liquid assets don’t increase in value. If they had $1 in cash seven years ago, it would be worth less than that today due to inflation.
Stocks are liquid assets. They can increase in value.
T-bills are also liquid assets. They can also increase in value.
Savings accounts and money market accounts are also liquid assets. They can also increase in value.
I’m pretty sure that liquid assets are things that you can spend, so cash and bank accounts. Anything that you have to sell to buy things is not a liquid asset. (Note that we are not talking about barter. I had a friend at college who traded a snake for a VW camper, neither of which would be considered a liquid asset. Even though technically you could put the snake in a giant blender…)
No, a liquid asset is one that can be sold quickly for its full market value.
For example, if you have stocks worth $100K, you can quickly convert them to $100K in cash. Whereas real estate is not liquid, because you usually cannot quickly convert a house worth $100K into cash.
Some people make a distinction between “liquid assets” and “near-liquid assets” and would classify something like a money market account (which also does grow in value as many liquid assets do) as a liquid asset, and maybe some forms of stock as near-liquid assets…but I’m splitting hairs.
Ultimately, you’re right…downvotes be damned.