What is the term for the likelihood that an asset can be converted into cash quickly without a discount on its value?

The term that describes the likelihood that an asset can be converted into cash quickly without a discount on its value is liquidity. Liquidity refers to how easily and quickly an asset can be sold or converted into cash without a significant loss in value. High liquidity means that there are many willing buyers in the market, which facilitates a straightforward sale at the asset's fair market value.

In contrast, marketability refers to the ease with which an asset can be sold, but it may involve a longer time frame or potential discounts, which distinguishes it from liquidity. Capitalization pertains to the financial structure and funding of a company, typically related to the valuation of income-generating assets rather than the immediate conversion to cash. Equity relates to ownership interests in assets, particularly in a company, rather than the asset's ability to be quickly turned into cash. Each of these terms has distinct meanings within the realm of finance and asset management, thereby clarifying why liquidity is the correct choice in this context.