#Liquidty101
Examples in Action :
Highly Liquid Scenario:You own $1,000 in Apple stock. You can sell it within seconds on a stock exchange at the current market price (e.g., $150 per share) with minimal price impact.
Iiquid Scenario:You own a $1,000 rare painting. Finding a buyer might take weeks or months, and you may need to lower the price significantly for a quick sale.
Business Context:A company has $50,000 in cash and $20,000 in current liabilities. Its current ratio is 2.5 ($50,000 ÷ $20,000), signaling strong liquidity to cover short-term debts.
