Whether you can actually sell when you want to
Liquidity is how easily you can trade near the price you see. Stocks with heavy volume and a deep order book are liquid; small companies often are not. Poor liquidity costs you on both sides — you pay up to buy and take less to sell.
Selling 1,000 shares at market in a stock that trades 3,000 a day means dumping a third of the day's volume at once.
For learning, not investment advice. Decisions are your own.
StockFit · TrueNorthLabs Inc.