#Liquidity101 #Liquidity101

Liquidity refers to how easily an asset can be converted into cash without significantly affecting its price. Cash is the most liquid asset, while real estate or collectibles are less liquid. In business and investing, high liquidity means quick access to funds for transactions or emergencies. Liquid markets, like major stock exchanges, allow easy buying and selling. Illiquid assets may take time to sell and may require price discounts. Managing liquidity is crucial for individuals and companies to meet obligations and avoid financial stress. In short, liquidity equals flexibility and financial health. Always consider it in financial decision-making.