#Liquidity101 is a basic concept of liquidity in finance. Liquidity reflects the ability to convert assets into cash quickly without losing value. Highly liquid assets include cash and marketable securities, while real estate or fixed assets are usually less liquid. For businesses, good liquidity facilitates easy payment of short-term debts and maintains stable operations. Investors also need to understand liquidity to consider when buying and selling assets. In financial markets, high liquidity often corresponds with lower risk levels. Mastering #Liquidity101 is the first step to gaining a deeper understanding of financial management and investment.