2006-06-13 22:40:57 · 7 answers · asked by VD 1 in Business & Finance ➔ Investing
a "liquid" market means that there are always plenty of buyers and sellers, so that shares can be converted to cash quickly at any time. This is a "good thing," because when market conditions are changing quickly, you may need to get out (or in) quickly to take advantage. With an "illiquid" market (some foreign markets may qualify) you may be forced to wait and accept a price that you don't want.
2006-06-14 04:00:25 · answer #1 · answered by Yardbird 5 · 3⤊ 0⤋
Liquidity Driven Market
2017-01-19 13:07:30 · answer #2 · answered by Anonymous · 0⤊ 0⤋
It means that not everyone thinks the stock market is going to keep going down. Liquidity refers to the amount of money or the number of buyers that are waiting to invest. Price is the trigger mechanism between buyer and seller. If there were no one interested in buying, who would a seller sell his shares to? Liquidity means that a seller can easily find a buyer for his shares. Maybe not at the price the seller wanted, but once again, the deals gets done as soon as buyer and seller agree on the price.
2006-06-13 23:50:20 · answer #3 · answered by MancalledDad 3 · 0⤊ 0⤋
When something is "liquid" it means that it can be turned in to cash quickly ie: be sold quickly. So a liquidity driven market would be a market based on items that can be sold quickly. A house or large purchases like that are not very liquid b/c they take time to pay off.
2006-06-13 22:52:30 · answer #4 · answered by Fat Guy 5 · 0⤊ 0⤋
Liquidity driven market means a market driven by availability of money.
2006-06-13 22:57:08 · answer #5 · answered by ankit_gaur 2 · 0⤊ 0⤋
Liquidity ensures more buyers and sellers for the stock. That ultimately means that there is more demand and supply. It is simple economics to state that price is a factor of demand and supply, thus is the correlation between liquidity and stock price
2006-06-13 23:29:05 · answer #6 · answered by The Guru® 5 · 0⤊ 0⤋
Fooling the people by operators and analysts.
2016-08-19 06:43:23 · answer #7 · answered by pdkamath 1 · 0⤊ 0⤋