The term liquidity in stocks stands to describe the level of asset or security that can be sold in the market at a price i.e conversion level to cash.
The liquidity in the market helps to know whether the market is ready for the asset or the condition in the market to convert asset in cash. One can measure liquidity in market with various measures.
When it comes about liquidity, let us understand cash in the market. Cash is considered to be the most liquid asset in the global market. Whereas, tangible assets, like real estate, fine art, and collectibles, are lesser in liquidity ratio. From equities to partnership units, these financial assets comes under liquidity spectrum.

There are similar terms like stock liquidity and accounting liquidity.
Stock liquidity is a term used to while analysing stocks.
Accounting liquidity reflects the ease for an individual or company to measure the chances of meeting the financial demand with liquid asset.