Liquid market: Difference between revisions
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A liquid market is one in which large quantities of the asset traded in the market can be bought or sold at any time, with low transaction costs, and without affecting the market price. | A liquid market is one in which large quantities of the asset traded in the market can be bought or sold at any time, with low transaction costs, and without significantly affecting the market price. | ||
This implies there are sufficiently large numbers of willing buyers, if more of the asset becomes available to buy | This implies there are sufficiently large numbers of willing buyers, if more of the asset becomes available to buy. | ||
This would mean that the market was sufficiently liquid. | |||
If the market was insufficiently liquid it would mean there was a low or no demand for those assets | |||
If the market was insufficiently liquid it would mean there was a low or no demand for those assets. | |||
Revision as of 22:35, 20 May 2020
A liquid market is one in which large quantities of the asset traded in the market can be bought or sold at any time, with low transaction costs, and without significantly affecting the market price.
This implies there are sufficiently large numbers of willing buyers, if more of the asset becomes available to buy.
This would mean that the market was sufficiently liquid.
If the market was insufficiently liquid it would mean there was a low or no demand for those assets.
