Market liquidity is a Historically, the term business referred to activities or interests. By extension the word became (as recently as the 18th century) synonymous with an individual commercial enterprise. It has also taken on the more general meaning of a nexus of commercial activities. People establish businesses in order to perform economic activities... business or Economics is the social science studying production and consumption through measurable variables. It involves analysing the production, distribution, trade and consumption of goods and services. Economics is said to be positive when it attempts to explain the consequences of different choices given a set of assumptions and normative when it... economics term that refers to the ability to quickly buy or sell a particular item without causing a significant movement in the price. The term is usually shortened to liquidity.

The essential characteristic of a liquid market is that there are ready and willing buyers and sellers at all times.

A market is considered deeply liquid if there are ready and willing buyers and sellers in large quantities. This is related to a deep market, where orders can not strongly influence prices.

The liquidity of a product can be measured as how often it's bought and sold. For stocks this is known as the Volume (also called capacity) is a quantification of how much space an object occupies. The SI unit for volume is the cubic metre (American spelling meter). The volume of a solid object is a numerical value given to describe the three-dimensional concept of how much space it occupies. One... volume of trades ([1] (http://www.marketdata.nasdaq.com/asp/Sec1Summary.asp)).

Often Investment is a term with several closely related meanings in finance and economics. It refers to the accumulation of some kind of asset in hopes of getting a future return from it. In theoretical economics, investment means the purchase (and thus the production) of capital goods - goods which are not... investments in liquid markets such as the A stock exchange is an organization of which the members are stock brokers. A stock exchange provides facilities for the trading of securities and other financial instruments. Usually facilities are also provided for the issue and redemption of securities as well as other capital events including the payment of income... stock exchange are considered to be more desirable than investments that are considered relatively illiquid, like Real estate is a legal term that encompasses land along with anything permanently affixed to the land, such as buildings. Real estate is often considered synonymous with real property (also sometimes called realty), in contrast with personal property, or personalty. However, for technical purposes, some people prefer to distinguish real... real estate. This is because the forced sale or purchase of an item in an illiquid market may be at a disadvantageous price.

Speculation is the buying, holding, and selling of stocks, commodities, futures, currencies, collectibles, real estate, or any valuable thing to profit from fluctuations in its price as opposed to buying it for use or for income - dividends, rent etc. Speculation is one of three market roles in western financial markets... Speculators and A market maker is a person or a firm which quotes a buy and sell price in a financial instrument or commodity hoping to make a profit on the turn or the spread (i.e. the difference) between the buying and selling price. Most stock exchanges operate on a matched... market makers contribute to the liquidity of a market. One of the usual objections to a A Tobin tax is the suggested tax on all trade of currency across borders. This is supposed to put a penalty on short-term speculation in currencies. The proposed tax rate would be low, between 0.05 and 1.0 per cent. The name comes from the economist James Tobin... Tobin tax is precisely that it will discourage speculation on currencies, which will lessen the liquidity of foreign exchange markets, increasing their Volatility is the standard deviation of the change in value of a financial instrument with a specific time horizon. It is often used to quantify the risk of the instrument over that time period. Volatility is typically expressed in annualized terms, and it may either be an absolute number (100... volatility. It is for this reason that market makers and professional traders are exempted in the UK from the 0.5% ad valorem A tax is an involuntary fee paid by individuals or businesses to a government. Taxes may be paid in cash or kind (although payments in kind may not always be allowed or classified as taxes in all systems). The means of taxation, and the uses to which the funds raised... stamp duty on share purchases.

The risk of illiquidity need not apply only to individual investments: whole portfolios are subject to liquidity risk. Financial institutions and asset managers that oversee portfolios are subject to what is called "structural" and "contingent" liquidity risk. Structural liquidity risk, sometimes called funding liquidity risk, is the risk associated with funding asset portfolios in the normal course of business. Contingent liquidity risk is the risk associated with finding additional funds or replacing maturing liabilities under potential, future stressed market conditions.

When a A central bank is an entity responsible for monetary policy of its country (or in the case of the EU, group of member countries). Its primary responsibility as a central bank is for the stability of the national currency and money supply, including interest rates; and acting as a lender... central bank tries to influence the liquidity ( Money supply (monetary aggregates, money stock), a macroeconomic concept, is the quantity of money available within the economy to purchase goods, services, and securities. Contents // 1 Introduction 2 Scope 3 Link with inflation 3.1 Monetary exchange equation 3.2 Percentage 3.3 Example 3.3.1 Flow 3.3... supply) of money, this process is known as Open Market Operations are the means by which central banks control the liquidity of the national currency. This management of liquidity is used to achieve certain monetary targets. It is the basis for monetary policy. The process entails the use of newly minted national currency to buy in the open... open market operations.

In business lingo, merchants often have Liquidation refers to a business whose assets are converted to money in order to pay off debt. Liquidation (also known as winding-up) is one of the forms of insolvency in the English Courts and is used when the other methods of corporate recovery have failed. There are two forms... liquidation sales, in which inventories are sold at discount to raise cash.