Liquidity Analysis
Market Structure
Definition
Assessment of how easily and quickly an asset can be bought or sold without significantly affecting its price, measuring market depth, bid-ask spreads, and trading volume patterns.
Key Points
- Measures ease of buying/selling
- Narrow spreads indicate good liquidity
- Important for large institutional trades
Examples
Apple stock highly liquid with tight spreadsSmall-cap stocks often less liquidQuick Info
Category
Market Structure
Related Topics
market depth
bid ask spread
trading volume
Related Terms
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