#Liquidity101

Liquidity refers to how easily an asset can be converted into cash without affecting its market price. Cash is the most liquid asset, while things like real estate or collectibles are less liquid. In business and investing, high liquidity means quick access to funds when needed, which is crucial for meeting short-term obligations or seizing opportunities. A liquid market has lots of buyers and sellers, making trades faster and more efficient. Understanding liquidity helps investors manage risk and make smarter financial decisions. Always consider liquidity before making an investment—being rich on paper doesn’t always mean access to cash.