February 2013
Beginner
288 pages
6h 31m
English
Liquidity is the degree to which an asset can be sold quickly and easily without loss in value. Property investment assets are relatively illiquid investments because they may take weeks to sell. I knew this before 2008, but it really hit home when trying to sell two properties in a market where liquidity almost totally disappeared. If a quick sale is needed, a reduction in price is usually required.
Shares are generally more liquid than property, but they can still be hard to sell quickly and without moving the price against you. If other investors and market makers see you coming with a lot of shares that are infrequently traded they may well drop the price. Smaller company shares tend to be most illiquid. ...
Read now
Unlock full access