#Liquidity101 #Liquidity101 💧
Liquidity refers to how quickly and easily an asset can be converted into cash without affecting its price. In finance, cash is king because it’s the most liquid asset. Stocks are fairly liquid, while real estate or collectibles are less so.
Why it matters:
High liquidity = easier to trade
Low liquidity = more risk, bigger price swings
Whether you're investing or managing a business, understanding liquidity helps you stay flexible and prepared.
Know your assets. Know your cash flow. That’s #Liquidity101. 💡
