#Liquidity101

🔸 Types of Liquidity:

1. Market Liquidity

How quickly you can buy or sell something (like stocks or real estate) without causing big price changes.

Example: Stocks of major companies (like Apple) are highly liquid.

2. Accounting Liquidity

A company’s ability to pay short-term debts using its current assets.

Example: Cash, inventory, and accounts receivable are liquid assets.

🔸 Most to Least Liquid Assets:

Asset Type Liquidity Level

Cash Highest

Bank deposits High

Stocks Medium-High

Real Estate Low

Art/Collectibles Very Low