Immediacy is an important measure for evaluating asset liquidity because it reflects how quickly an asset can be bought or sold in the market without causing a significant change in its price. Here are a few reasons why immediacy is crucial:

1. Market Efficiency: Immediacy indicates the efficiency of the market. In highly liquid markets, assets can be traded quickly, which means prices are more likely to reflect all available information. This contributes to market stability and investor confidence.

2. Cost of Trading: The ability to execute trades quickly often reduces the transaction costs associated with buying or selling an asset. When immediacy is high, the bid-ask spread is typically narrower, meaning investors and traders can enter or exit positions at prices closer to the market average.

3. Risk Management: For investors and traders, being able to quickly convert assets to cash or rebalance portfolios is critical for managing risk. High immediacy allows for rapid response to market changes or personal financial needs, reducing exposure to potential adverse price movements.

4. Market Participation: High immediacy attracts more participants to the market, including institutional investors who require the ability to move large volumes of assets swiftly. This increased participation can further enhance liquidity by contributing to higher trading volumes and tighter spreads.

5. Price Stability: When assets can be traded quickly without large price impacts, it helps maintain price stability. This is particularly important in volatile markets where rapid price changes can lead to significant losses.

Overall, immediacy is a key component of liquidity that ensures assets can be traded efficiently, cost-effectively, and with minimal risk, making it a vital consideration for investors and market participants.