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No. Liquidity is the measure of the ease with which it is easy to trade a given item. That is to say, shares of IBM are pretty liquid, treasury bonds are very l
by joshu 15y ago
No. Liquidity is the measure of the ease with which it is easy to trade a given item. That is to say, shares of IBM are pretty liquid, treasury bonds are very liquid, and dollars are extremely liquid. But your car is not particularly liquid.
The rest of your analysis is nonsense.
- joe_the_user 15y agoLiquidness - has easily a thing can be liquidated, how easily it can be turned into cash. Liquidity - cash waiting to buy the thing and liquidate it. A "liquid market", though, is normally a market with lots of liquidity rather a market which can be easily sold. The existence of money to be invested is what makes a stock markets liquid... Money to be invested is the necessary ingredient of a "liquid market". And a liquid market is a complex thing to measure. A market can easily seem liquid if lots of shares trade. But if it's the same shares over and over again on a day-to-day basis and if any time a large block appears, the price goes way down, then the market has an illusion of liquidity rather than real liquidity.
- joshu 15y agohttp://www.investopedia.com/terms/l/liquidity.asp#axzz1UscLt1Wj http://www.investopedia.com/terms/l/liquidity.asp#axzz1UscLt...
- deleted 15y ago[deleted]