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<blockquote data-quote="me2cool" data-source="post: 26094542" data-attributes="member: 396331"><p>Good question.</p><p>This is called the "<strong>liquidity</strong>" of an asset. Liquidity means how fast you can cash out a certain asset. </p><p>Take gold. Very high liquidity. You can sell your gold at any time you want. </p><p>Take a land. Low liquidity. You will have to wait sometime for a buyer. </p><p></p><p>Same theory applies in the stock market. </p><p></p><p>There are shares with high liquidity and with low liquidity. Normally all fundamentally strong shares has at least a OK liquidity. </p><p></p><p>Go to CSE.lk or investing.com and see what has been the <strong>average volume of the last 3 months</strong> for a certain share. If high 3 months average, this means this stock has a very good liquidity in the recent times.</p></blockquote><p></p>
[QUOTE="me2cool, post: 26094542, member: 396331"] Good question. This is called the "[B]liquidity[/B]" of an asset. Liquidity means how fast you can cash out a certain asset. Take gold. Very high liquidity. You can sell your gold at any time you want. Take a land. Low liquidity. You will have to wait sometime for a buyer. Same theory applies in the stock market. There are shares with high liquidity and with low liquidity. Normally all fundamentally strong shares has at least a OK liquidity. Go to CSE.lk or investing.com and see what has been the [B]average volume of the last 3 months[/B] for a certain share. If high 3 months average, this means this stock has a very good liquidity in the recent times. [/QUOTE]
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