#Liquidity101

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Liquidity refers to how easily assets can be converted into cash without a significant loss in value. Liquid assets include cash and checking accounts, while real estate and stocks are considered less liquid. Liquidity is important for businesses and individuals to cover unexpected expenses and short-term obligations. A lack of liquidity can lead to financial difficulties even if assets are abundant. In financial markets, high liquidity indicates the ability of investors to buy and sell easily. Therefore, it is essential to understand liquidity as a fundamental part of financial planning and personal and institutional financial management. #Liquidity101