#Liquidity101 Liquidity refers to how quickly and easily an asset can be converted into cash without affecting its market price. High liquidity means assets can be sold fast with minimal price impact—like stocks or cash. Low liquidity assets, like real estate or collectibles, take more time to sell and may need price cuts. For investors and businesses, liquidity is crucial for meeting short-term obligations and seizing new opportunities. Always check an asset’s liquidity before investing. It's a key factor in risk management and financial flexibility.
#Liquidity101