Liquid market


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Related to Liquid market: Illiquid Market, Illiquid Assets

Liquid market

A market allowing the buying or selling of large quantities of an asset at any time and at low transactions costs.

Liquidity

Easy convertibility into cash. A liquid asset or security can be easily bought or sold with little or no impact on price. Most methods of counting money supply include some highly liquid investments such as certificates of deposit. Liquid assets and investments are highly desirable as they may be sold to allow an investor to enter other investments as they arise. On exchanges, liquid investments usually have low bid-ask spreads. See also: Illiquid, Liquidity preference hypothesis.
References in periodicals archive ?
Packages in asset classes for which no asset-class specific criteria exist are considered not to have a liquid market as a whole.
But it would be accelerated in no small degree by the creation of a broad, liquid market in European short-term government debt.
SCHUETZE: To be sure, in the absence of a liquid market, getting estimates of fair value is difficult.
M2 EQUITYBITES-February 8, 2018-Templum to Acquire Liquid Markets Group Broker/Dealer Liquid M Capital
Qatar Stock Exchange places great emphasis on the importance of market liquidity and its relationship to financial market development given its links to investors, for whom more liquid markets mean lower costs of trading, an ability to move more easily in and out of the market, lower price volatility, and ultimately improved price formation, the bourse said in a statement.