In trading, what does liquidity mean and how does it work
In: Economics
Liquidity means easy to convert into another asset. Cash in a checking account is super liquid, because you can turn it into anything. Stock of a major company is pretty liquid because you can sell it instantly during market hours. Shares of a private company are less liquid because there is a process of when and how you might be able to sell. Real estate is also less liquid because it takes times to list, sell, close, etc.
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