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What Is Stock Liquidity?

2010/10/27 15:46:00 185

Stock Market Share Price

Liquidity.

shares

Liquidity refers to the difference between stocks.

Investment

The pactional nature of persons.

Liquidity is usually measured by the number of negotiable stocks, the volume of shares, and the sensitivity of stock prices to trading volume.

The greater the number of tradable shares, the greater the volume of trading, and the less sensitive the price is to the volume (the price will not change with the turnover), the better the liquidity of the stock will be, the worse it will be.

The circulation of stocks enables investors to sell shares held in the market and obtain cash.

Through the circulation of shares and

Price of stock

The changes can show people's judgment of the development prospects and profit potential of related industries and listed companies.


Those industries and companies that attract large numbers of investors and share prices in the circulation market can continuously absorb large amounts of capital into people's production and operation activities through issuing additional shares, and have received the effect of optimizing the allocation of resources.

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