Your 200-year old professor probably told you that liquidity is the degree to which an asset can be bought or sold in the market without affecting its price. While there's nothing wrong with your professor's adage, I like to think of liquidity as an asset's popularity.

A "popular" asset would have hordes of groupies and haters, or in geek speak -buyers and sellers. As an example, consider my twin, Brad Pitt. As a popular A-list celebrity, he would probably pay less attention to one hateful tweet than a washed up D-lister like Pauly Shore would.

Also, the positive comments from his numerous fans will cancel out any negative comments from the haters. Besides, Brad would probably be too busy minding his beautiful family, fame and fortune to notice such an insignificant event.

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