What does it mean if an investment has little liquidity?

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01-07-2022
Social Studies

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What does it mean if an investment has little liquidity?

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Kapoorprachi783idn Kapoorprachi783idn · Answer 1 · 2022-07-07T12:09:34-04:00

Liquidity refers to the ease with which an asset, or safety, can be transformed into geared-up cash without affecting its market rate. coins are the maximum liquid of property, whilst tangible items are less liquid.

Low liquidity means that markets have few possibilities to buy and promote, and belongings grow to be difficult to exchange. The liquidity of an asset can also talk to how quickly it is able to be converted to cash because cash is the maximum liquid asset of all.

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