Liquidity

RECENT NEWS
The Economic Times  Feb 23  Comment 
While all RBI representatives favoured a neutral liquidity stance, only 1 of the external members, Ravindra Dholakia, justified the neutral liquidity stance.
The Economic Times  Feb 22  Comment 
All three RBI representatives, external member Ravindra Dholakia , felt that the current (policy rate) is optimal for liquidity in the economy.
The Economic Times  Feb 14  Comment 
The People's Bank of China set the midpoint rate at 6.8806 per dollar prior to market open, firmer than the previous fix of 6.8898.
newratings.com  Feb 13  Comment 
BEIJING (dpa-AFX) - China's tighter liquidity conditions affected the shadow banking sector, Moody's Investors Service reported Monday. "We expect that a combination of tighter liquidity conditions and stricter regulatory scrutiny on...
The Economic Times  Feb 10  Comment 
India is Coca-Cola’s sixth largest market and is considered key to the company’s growth at a time it is contending with shifting tastes in its traditional markets
The Economic Times  Jan 27  Comment 
Sales volumes in the Indian residential market decreased by more than 40% in fourth quarter of 2016 compared to the same period in 2015, Moody's said.




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