Liquidity

RECENT NEWS
The Hindu Business Line  Jul 21  Comment 
To help banks meet the liquidity coverage ratio (LCR) norm, the Reserve Bank of India on Thursday said government securities up to 9 per cent of their deposits under the Facility to Avail Liquidity fo...
Wall Street Journal  Jul 19  Comment 
Turkey’s failed coup unsettled the country’s markets. Global liquidity could yet ride to the rescue—again.
Mondo Visione  Jul 19  Comment 
Liquidnet, the global institutional trading network, announced today the launch of Fixed Income Targeted Invitations, a tool to seek latent liquidity across its critical mass of institutional participants, for the U.S. and EMEA. Targeted...
The Economic Times  Jul 14  Comment 
Since the time RBI announced its plan for liquidity, Sensex has rallied 10.37%. RBI’s action may have contributed a great deal to the surge in stocks.
Reuters  Jul 13  Comment 
The European Central Bank does not expect any squeeze in financial market liquidity or bank funding in the wake of Britain's vote to leave the European Union after an initial shock was easily overcome, a senior ECB official said on Wednesday.
Financial Times  Jul 13  Comment 
SEC order inadvertently highlights the issue
MarketWatch  Jul 5  Comment 
Moody’s says its Liquidity-Stress Index improved in June as more issuers were upgraded than downgraded.
Financial Times  Jul 5  Comment 
Foreign inflows and Chinese monetary loosening expected to withstand Brexit impact




RELATED WIKI ARTICLES

Related Articles

 
TOP CONTRIBUTORS

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/

Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki