#Liquidity101
š§ **What is Liquidity?**
Ever tried selling something quickly without losing its value? Thatās liquidity in action!
In finance, **liquidity** means how easily you can convert an asset into cash.
* šø **High liquidity** = Cash, stocks
* š **Low liquidity** = Real estate, collectibles
The higher the liquidity, the faster you can move money without taking a hit.
Smart investors always think about liquidity before making a move.