Liquidity (or Marketability)

{
  "id": "MLC-T-FIN-000226",
  "term": "Liquidity (or Marketability)",
  "field": "Finance and investing",
  "definition": "Liquidity generally refers to how easily or quickly a security can be bought or sold in a secondary market. Liquid investments can be sold readily and without paying a hefty fee to get money when it is needed.\n\nA stock’s liquidity generally refers to how rapidly shares of a stock can be bought or sold without substantially impacting the stock price. Stocks with low liquidity may be difficult to sell and may cause you to take a bigger loss if you cannot sell the shares when you want to.\n\nLiquidity risk is the risk that investors won’t find a market for their securities, which may prevent them from buying or selling when they want. This is sometimes the case with complicated investment products and products that charge a penalty for early withdrawal or liquidation such as a certificate of deposit (CD).",
  "references": [
    "SEC Investor.gov Glossary"
  ],
  "url": "https://mlchart.com/terminology/finance/liquidity-or-marketability/"
}