#Liquidity101

Liquidity is the ease of buying or selling an asset without causing a significant change in its price. It is a measure of how active and efficient the market is. A liquid market allows for transactions to be completed quickly, with minimal delay or price fluctuations.

For example, in a liquid market like the stock exchange, there are many sellers and buyers at any given time. If you want to sell shares of a well-known company, you can almost immediately find a buyer, and the price you receive will be close to the market price. The large number of participants ensures price stability and smooth execution of transactions.