#Liquidity101

Liquidity refers to the ability of an asset to be converted into cash or other assets quickly and without significant loss of value. In the context of finance and investment, liquidity is very important because it allows asset owners to easily access their funds when needed.

Examples of liquid assets include:

- Cash

- Actively traded stocks

- Government bonds

Meanwhile, examples of illiquid assets include:

- Real estate properties

- Art collections

- Stocks that are not actively traded

High liquidity allows for faster and easier transactions, making it very important in financial markets.