#Liquidity101 #Liquidity101 💧
Liquidity refers to how quickly and easily an asset can be converted into cash without significantly affecting its price. Cash is the most liquid asset, while things like real estate or collectibles are less liquid. In business, strong liquidity means a company can cover its short-term obligations with ease. Investors also look at liquidity when choosing stocks or markets—high liquidity often means easier buying and selling. Whether you're managing personal finances or running a business, understanding liquidity is key to staying flexible and financially healthy. Always ask: Can I access my money when I need it?