Liquidity in the stock market is the ease of buying or selling without affecting their price. High liquidity means quick transactions at stable prices & vice versa for low liquidity.
Liquidity ensures quick, efficient transactions with minimal price impact, fostering fair markets. It boosts investor confidence, allows timely trades, and reduces costs.
Liquidity ensures quick, efficient transactions with minimal price impact, fostering fair markets. It boosts investor confidence, allows timely trades, and reduces costs.
Look for high trading volumes and narrow bid-ask spreads. High volumes indicate strong demand and supply, while a small spread shows minimal price impact during trades.
These stocks are traded in large volumes daily, making transactions easy. Their supply & demand result in minimal fluctuations, ensuring stable prices & reduced transaction costs.