Your Liquidity Need corresponds to your need to be able to quickly and easily convert all or a portion of your account assets into cash without experiencing significant loss. In less ‘liquid’ investments, there is often a lower volume of shares traded daily and a larger spread between the bid and ask price of the security. It may take a longer time to liquidate your investment as compared to more liquid securities, and you may risk a worse price outcome if you attempt to quickly liquidate the position.
Liquidity needs options
- Very Important
- Somewhat Important
- Not Important
Comments
0 comments
Please sign in to leave a comment.