The capacity to sell or acquire an item without significantly changing the market price is referred to as liquidity. It also has something to do with the notion of how simple it is to convert an asset to fiat money. Properties or assets that are difficult to trade for cash are not considered to be liquid assets, but those that may be exchanged immediately are. When a trader or investor can quickly sell or buy a certain asset, it is said that the market is liquid, which implies that there is always a counterpart prepared to trade. In comparison, the trader would have to wait much longer before his order was finally executed on a market that is not thought to be liquid. In order to acquire and sell financial products efficiently — without having to wait too long or put up with unfair prices — traders frequently look for a liquid market. As a result, markets that exhibit both a high level of trading activity and a moderate (not excessively wide) spread between the bid and ask orders are said to be liquid. The ability of debtors to make on-time loan payments is another situation where liquidity may be utilized. In accounting, this ability is referred to as accounting liquidity. So, when a business can easily pay off its loans and debts, it is said to be liquid.