#Liquidity101
In finance, liquidity refers to how quickly and easily an asset can be converted into cash without significantly affecting its price.
💵 High Liquidity = Easy to sell (e.g., cash, stocks)
🏡 Low Liquidity = Harder to sell (e.g., real estate, collectibles)
Why does it matter?
➡️ Strong liquidity helps individuals and businesses meet short-term obligations.
➡️ In markets, liquidity supports smooth trading and price stability.
📊 Whether you’re investing or running a business, understanding liquidity is key to managing risk and making smart decisions.
