Market Liquidity
/ˈmɑːrkɪt lɪˈkwɪdəti/
Definitions
- (n.) The ease with which assets can be bought or sold in a market without affecting the asset's price.
Market liquidity is crucial for investors to enter and exit positions efficiently.
Forms
- market liquidity
Related terms
See also
Commentary
In legal drafting, distinctions between market liquidity and asset liquidity should be clear to avoid ambiguity in financial regulations or contracts.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.