#NasdaqETFUpdate Liquidity101 Liquidity is the ability to convert assets into cash without causing a decline in the value of those assets. Highly liquid assets include cash, easily tradable securities, or bank accounts. In contrast, real estate or fixed assets typically have low liquidity due to the difficulty of selling them quickly. Liquidity is very important in personal and business financial management, as it affects the ability to meet short-term financial obligations. In investing, investors often prioritize highly liquid assets to easily exit positions when necessary. Therefore, a clear understanding of liquidity helps you manage risk better and make more effective financial decisions.