#Liquidity101

Liquidity101 refers to the basic understanding of liquidity—how easily assets can be converted into cash without significantly affecting their market price. It is a fundamental concept in finance, essential for individuals, businesses, and investors. High liquidity means assets like stocks or cash can be quickly accessed or sold, while low liquidity assets, such as real estate, take longer to convert. Liquidity101 covers types (market, accounting, and funding liquidity), key metrics (like current ratio), and why liquidity matters for financial health and risk management. Understanding liquidity helps in making informed decisions, ensuring stability, and avoiding cash flow crises in uncertain times.