#Liquidity101 Here's a concise 100-word explanation of **#Liquidity101**:

**Liquidity describes how easily an asset can be converted to cash quickly without significantly affecting its price.** Think of it as "spendability." Cash is the most liquid asset. Stocks of large companies traded frequently are typically liquid. Real estate or rare collectibles are illiquid – selling them fast often requires lowering the price. High market liquidity means assets can be bought/sold easily with minimal price disruption, vital for smooth trading. For investors, liquidity matters because it affects your ability to access money or exit positions swiftly. Low liquidity can lead to bigger price swings and difficulty finding buyers/sellers when you need them.

**Key Points:** Ease of Conversion to Cash, Speed, Price Stability, Market Efficiency, Investor Flexibility.