Liquidity

Liquidity is the state of assets being liquid, or the ability to easily turn the assets or investments into currency by finding a buyer for the asset on a market.

The inability to find a buyer for an asset makes the asset illiquid.

References

  1. Grinold, Richard C., and Ronald N. Kahn. Active portfolio management: Quantitative theory and applications. Probus, 1995.
  2. Wilmott, Paul. Paul Wilmott introduces quantitative finance. John Wiley & Sons, 2007.
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