O'Reilly logo

Get Started in Shares by Glen Arnold

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

Some more types of risk

Liquidity risk

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. ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required