The Liquidity term refers to the easy with which an asset can be converted into cash. The liquidity of a certain company’s stock is a measure of the ability of the market to absorb buying and selling of this stock without serious effect on the stock price. When we say that a stock is liquid, this means that a relatively large blocks of this stock can be bought or sold in short period of time, without substantially affecting the price of the stock. Examples of liquid stocks are blue-chip stocks like Microsoft or GE.
Illiquid stock is a stock with low volume, which price can be affected by relatively small trades. A classic example of illiquid asset is real estate.
Free charting webinar
Mon, Nov 18th, 2013 12:00 PM - 1:00 PM EST
During the 60 minute session Paul Coghlan, founder of Coghlan Capital, looks at current charts for currencies, precious metals, US indices, highlighting turns and low risk entry points using the Median line analysis methodology.
Median line analysis reduces risk and increases the chartists ability to see trend direction, trend strength and highlight entry and exit levels.
Seats are limited so be sure to reserve your spot today. The webinar will be recorded, by signing up you'll receive an email with the webinar replay afterwards.