Liquidity

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MarketWatch  Oct 1  Comment 
A commissioner at the Securities and Exchange Commission on Wednesday said the stock market structure needs a thorough review and he stated concerns about the bond market.
The Hindu Business Line  Oct 1  Comment 
Reduction of liquidity provided under the Export Credit Refinance facility from 32 per cent (of eligible export credit outstanding) to 15 per cent will affect both – cost of credit and ava...
SeekingAlpha  Oct 1  Comment 
By Joseph Calhoun: By Jeffrey P. Snider The pestilence of the wholesale "money" system, the eurodollar standard if you will, is that the "dollar" is no longer anything like one and that these "markets" for it are not directly observable. That...
StreetInsider.com  Sep 24  Comment 
Visit StreetInsider.com at http://www.streetinsider.com/Corporate+News/Echo+Therapeutics+%28ECTE%29+Will+Suspend+Operations%3B+Aims+for+Liquidity+Conservation/9856413.html for the full story.
Reuters  Sep 22  Comment 
Reuters Market Eye - RBI could adopt a less hawkish stance should liquidity conditions remain easy in India and oil below $100 a barrel, says Deutsche Bank.
SeekingAlpha  Sep 21  Comment 
By EconMatters: Good Year Performance Wise We closed out our bond short this week and are up 42% so far this year. The reason we closed out our bond short is that we are trying to make money and control risk as much as possible in a market...
OilVoice  Sep 18  Comment 
PA Resources AB announces that it has initiated actions in order to preserve liquidity until a long term financing plan can be presented and in this respect the Company has today summoned a bondholde




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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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