Liquidity

RECENT NEWS
Mondo Visione  Apr 21  Comment 
Plato Partnership Limited (“Plato Partnership”), a not-for-profit company bringing creative solutions and efficiencies to today’s equity marketplace, and Turquoise, the European multilateral trading facility, today announce their...
The Economic Times  Apr 19  Comment 
For the common man, who may be concerned about the interest rate on loans, it pays to understand what the central bank means by liquidity.
Mondo Visione  Apr 18  Comment 
Hassan Al Serkal: “New service enables issuers to assign a licensed company to provide liquidity on its shares in order to enhance liquidity and achieve supply and demand balance”   Jassim Alseddiqi: “SHUAA looks forward...
The Times of India  Apr 11  Comment 
Banks have been cutting rates in the recent times as they want to use liquidity available with them, Finance Minister Arun Jaitley on Tuesday said in the Rajya Sabha as some parties, including ruling NDA, said demonetisation did not have positive...
The Economic Times  Apr 7  Comment 
Nifty may continue to see a modestly positive opening once again but do not expect any runaway rise. Some healthy consolidation now remains imminent.
The Hindu Business Line  Apr 6  Comment 
Last year, in the April policy, the RBI made substantial changes in liquidity management — moving from deficit to neutral liquidity
The Hindu Business Line  Apr 2  Comment 
Cash management bills (CMBs) help mop up excess money in the system
The Hindu Business Line  Mar 30  Comment 
Govt has assured exporters of fast refund of 90% of GST paid
The Economic Times  Mar 30  Comment 
The blue-chip CSI300 index fell 0.9 percent, to 3,436.76 points, while the Shanghai Composite Index lost 1 percent to 3,210.24 points.
The Economic Times  Mar 30  Comment 
According to Prime Database, 25 main-board IPOs came to the market in FY17, collectively raising Rs 28,211 crore with average IPO size being Rs 1,128 crore.




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