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Starting from your basic accounting balance sheet, you have 3 categories: Assets, Liabilities, and Equity. Your equity is the difference between your Assets and your liabilities. Liquidity refers to how easy you can convert an asset into cash. Houses would be illiquid and things like stocks are probably more liquid.

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13y ago
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14y ago

Liquidity is the cash you hold and equity is the asset such as house, shares which can be converted into cash

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Q: What is the difference between liquidity and equity?
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