๐ง What is Liquidity?
Liquidity means how quickly you can turn an asset into cash without losing value.
๐ High Liquidity:
Cash ๐ต
Stocks ๐
Gold ๐ช
(Quickly sellable with minimal price impact)
๐ Low Liquidity:
Real estate ๐ก
Collectibles ๐จ
(Takes time to sell, prices can fluctuate)
๐ก Why it matters:
Businesses need liquidity to pay bills and invest.
Investors need it for flexibility and reduced risk.
Low liquidity can trap your money when you need it most!
๐ Pro Tip: Balance your portfolio with both liquid and long-term assets for financial stability.
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