3 ms·
> By definition a stock is not a liquid asset. "By definition"? Which definition are you using? Liquidity exists on a spectrum and is not binary: > In busine
by throw0101a 5y ago
> By definition a stock is not a liquid asset.
"By definition"? Which definition are you using?
Liquidity exists on a spectrum and is not binary:
> In business, economics or investment, market liquidity is a market's feature whereby an individual or firm can quickly purchase or sell an asset without causing a drastic change in the asset's price. Liquidity involves the trade-off between the price at which an asset can be sold, and how quickly it can be sold. In a liquid market, the trade-off is mild: one can sell quickly without having to accept a significantly lower price. In a relatively illiquid market, an asset must be discounted in order to sell quickly.[1][2]
* https://en.wikipedia.org/wiki/Market_liquidity https://en.wikipedia.org/wiki/Market_liquidity