What are considered non-liquid assets?

Non-liquid assets are those that cannot be quickly or easily converted into cash without a significant loss in value. Examples of such assets include real estate, collectibles, and certain types of investments. To elaborate, what exactly qualifies as a non-liquid asset? How do these assets differ from liquid assets in terms of conversion to cash? Additionally, what are some common examples of non-liquid assets that individuals or businesses might hold? In summary, non-liquid assets are characterized by their difficulty in being quickly transformed into cash. They encompass a range of items, including real estate and collectibles, which typically require more time and effort to sell compared to liquid assets. Understanding the distinction between liquid and non-liquid assets is crucial for effective financial planning and investment strategies.