I'm trying to understand the financial term 'no liquidity'. Could someone explain what it means in simple terms? I'm particularly interested in how it affects the
market and transactions.
7 answers
SamuraiHonor
Fri Nov 29 2024
Selling shares in a low liquidity stock can be difficult, as finding a willing buyer may take time.
Nicolo
Fri Nov 29 2024
Liquidity in the context of stocks pertains to the ease and speed of buying or selling shares without significantly altering the stock price.
Sofia
Fri Nov 29 2024
This delay can be problematic, especially if you need to sell the shares urgently.
charlotte_bailey_doctor
Fri Nov 29 2024
Moreover, attempting to sell a low liquidity stock quickly may force you to accept a lower price than you originally anticipated.
AltcoinAdventurer
Fri Nov 29 2024
When a stock has high liquidity, it means that there are numerous buyers and sellers in the market, allowing for smooth transactions.