#Liquidity101 Sure! Here's a concise, 100-word summary of "Liquidity 101":
Liquidity refers to how easily an asset can be converted into cash without significantly affecting its price. Cash is the most liquid asset, while real estate and collectibles are typically less liquid. In financial markets, liquidity ensures smooth transactions and stable prices. A liquid market has many buyers and sellers, low transaction costs, and minimal price volatility. Poor liquidity can lead to price slippage and increased risk. Businesses also need liquidity to meet short-term obligations. Key measures include the current ratio and quick ratio. Overall, liquidity is vital for both investors and companies to maintain financial health and flexibility.
#liquidity 101