Moneypenny Minute: Your Finance MomentAugust 15, 2022
What is Liquidity?
Market liquidity is a market’s feature whereby an individual can buy or sell an asset without causing a big change in the asset’s price. Liquidity involves the trade-off between the price at which an asset can be sold, and how fast the asset can be sold. The easier it is to convert an asset into cash, the more liquid it is. Cash is often considered the most liquid asset.