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Finance: What is a Liquid Market? 17 Views
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Description:
A liquid market is a market featuring high trading volumes, i.e. investors actually want to put their cash to work.
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Transcript
- 00:00
Finance allah shmoop What is liquid market Well it's one
- 00:07
that trades Ah lot High volume Lots of buyers Lots
- 00:11
of sellers Liquid lots of cash sloshing this way In
- 00:15
that way Go this way and that Did you ever
- 00:17
see a liquid market go this way and that That
Full Transcript
- 00:20
little song Did you ever see a lassie Never mind
- 00:23
All right Weir Liquid markets Good Well because they implied
- 00:26
there's Lots of cash ready willing and able to be
- 00:29
put to work And that's usually a sign of a
- 00:31
healthy risk seeking active market versus risk averse one which
- 00:36
is you know hiding Ah liquid market means that investors
- 00:40
want to put their cash toe work that they have
- 00:43
actually saved cash along the way and or that they
- 00:46
have relatively easy access to credit And you can think
- 00:49
about it from the perspective of your kindly loving realtor
- 00:53
who wants a world where lots of people are buying
- 00:56
homes But in orderto have that happen you have to
- 00:58
have lots of people who are also selling homes at
- 01:01
the same time Otherwise prices just go higher and higher
- 01:04
with no supply to meet demand And at the end
- 01:06
of the day in real estate and it's in the
- 01:08
stock market while the most important thing yes that the
- 01:11
brokers get pays So that's a liquid market one that
- 01:15
trades a lot like it's Wet trading back and for
- 01:18
sloshing around not ice Where everything's you know all jammed 00:01:22.109 --> [endTime] up No needs heat or an animal or something
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