#Liquidity101
What is liquidity?It's the ease of buying or selling assets without affecting their price. Think of it like converting cash quickly!
Types:
1. Market liquidity: How easily assets are traded on markets.
2. Accounting liquidity: A company's ability to pay debts.
Why matters:
1. Market stability: Reduces price volatility.
2. Investor confidence: Attracts investors.
3. Efficient trading: Facilitates smooth transactions.
Your turn!Share a scenario where liquidity played a crucial role in your financial decision-making!
Let's discuss!comment your thoughts