Stock exchange liquidity

The ability to find a trading partner on the stock exchange at any time at a favorable cost. This includes the ability to trade large amounts without affecting the price against oneself (market impact: an adverse price movement due to large, quickly executed orders). Liquid secondary markets enable investors to dispose of securities at low cost in the event of an unforeseen need for funds. Liquid securities markets thus also increase the willingness to invest in corresponding securities. – See Liquidity, Securities market. – Cf. Deutsche Bundesbank Monthly Report, January 2006, pp. 37 ff. (here also issues relating to the regulatory framework).

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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
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