Which asset class is considered the least liquid?

Real estate is considered the least liquid asset class primarily because it cannot be quickly converted into cash without a significant time delay and usually involves a lengthy process of selling. Unlike cash, which can be accessed immediately, and checking accounts, which allow for instant withdrawals, real estate transactions require finding a buyer, negotiating a sale, and completing legal processes, which typically takes weeks, months, or even longer.

Stocks, while they can also take some time to sell depending on market conditions, generally have a much faster turnaround compared to real estate. The liquidity of an asset is defined by how easily it can be sold without significantly affecting its price; real estate does not meet this criterion due to its complex and lengthy sale process. Therefore, in the context of these asset classes, real estate stands out as the least liquid option.