Liquidity
Plain-English definition
The ability to turn an asset into cash promptly without a substantial price concession. Company funding liquidity is a related but different question: can obligations be paid when due?
Why it matters
A quoted price does not ensure that a large position can be sold at that price.
Example
A hypothetical thinly traded security may require a lower selling price to attract enough buyers.
How income investors use it
Distinguish market liquidity from a REIT's or BDC's access to cash and funding. Neither is the same as accounting profit.
This material is general education, not individualized investment, tax, or legal advice.