#Liquidity101 In the financial realm, the term **liquidity** goes beyond being just a trendy concept; it is a cornerstone that can determine the success or failure of a company. But what does liquidity really imply and why is it crucial for financial health?

## What is Liquidity?

Liquidity refers to the ability to convert an asset into cash quickly and without a significant loss of value. Assets with high liquidity, such as cash or shares of large companies, can be sold almost instantly.