Liquidity

Definition:

The degree to which an asset can be sold without a significant effect on its value. Typically, cash in hand is the most liquid asset that can be converted into other assets, such as goods or services. The ability of an asset to remain liquid despite market fluctuations strongly depends on the availability of buyers and sellers in a market and their appetite for risk.

Liquidity is a large determinant in choosing where to list a company (both in choice of the country and the exchange), as it can have a large impact on pricing of the security.

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