Liquidity

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The Economic Times  Dec 24  Comment 
These numbers might not reflect the real picture post-demonetisation, that is, November 8, as it calculates the business of the entire month.
The Economic Times  Dec 22  Comment 
The CSI300 index, which rose nearly 1 per cent on Wednesday, fell 0.1 per cent, to 3,335.81 points, while the Shanghai Composite Index lost 0.1 per cent, to 3,140.15 points.
MarketWatch  Dec 21  Comment 
Shares of Banca Monte dei Paschi di Siena SpA dropped 17% Wednesday following a report the embattled Italian lender's liquidity could be wiped out sooner than anticipated. The bank now expects to run out of liquidity in four months, compared with...
Reuters  Dec 21  Comment 
China stocks rebounded on Wednesday morning, as fears of a liquidity squeeze in the banking system subsided after risks from a high-profile bond scandal appeared contained.
Reuters  Dec 16  Comment 
Italian bank Popolare di Vicenza said on Friday the European Central Bank had asked it to improve its liquidity position and assess all options to cut its stock of bad loans as it readies a new business plan.
The Economic Times  Dec 14  Comment 
The minister is also hopeful the government may include some items such as soaps and shampoos in the 100 per cent foreign direct investment in food retail.
The Economic Times  Dec 12  Comment 
We have requested again that in back-end infra investment, you should allow a portion of whatever investment you make to be put in non-food items... It’s my dream vision to create that, said Harsimrat Kaur Badal




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Liquidity

Liquidity is defined as the ability to trade large size quickly at a low cost. It is one of the most important characteristics of a market. A liquid market allows traders to implement their strategies cheaply, normally with a limited bid/ask spread. A liquid market is characterized by high volume. It is generally less volatile than an illiquid market.

Usually, you can refer to three dimensions of liquidity - time, size and cost:

• “Immediacy” refers to how quickly you can execute a trade of a given size at a given cost.

• Width refers to the cost of executing a trade of a given size, including commissions.

• Depth refers to the size of a trade that can be executed at a given cost. Width and depth are very strictly related.

A liquid market is a market where you can trade large size quickly at low cost. Liquidity refers to how quickly you can convert your assets into cash. [1] Liquidation is the conversion of assets into cash by an Investor getting rid of a position in a particular type of security. [2]

For example, a portfolio manager might decide to liquidate a position in a stock by selling all the shares of that stock held in the portfolio. [3]

1610s, from liquidus. [1] Liquid Financial sense of "capable of being converted to cash" is first recorded 1818. [2]

References

  1. Stock Investing for Dummies‬ By Paul Mladjenovic pg22 ISBN-10: 0470401141
  2. Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott Accounting Professor ISBN-10: 0618176519 pg 212
  3. Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. ISBN-10: 0618176519 pg212

4. http://www.bestcashloans.org.uk/

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