Cryptocurrency Q&A
What happens when a stock has no liquidity?
What happens when a stock has no liquidity?
Enrico
Wed Dec 04 2024
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6 answers
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I'm wondering about the consequences or effects that occur when a stock experiences a lack of liquidity. What does it mean for investors and the market when a stock has no liquidity?
6 answers
Andrea
Fri Dec 06 2024
A stock characterized by low liquidity poses challenges for market makers.
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GyeongjuGrace
Fri Dec 06 2024
It also helps them mitigate the risks associated with dealing in low-liquidity stocks.
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SsangyongSpirit
Fri Dec 06 2024
Such stocks may not allow market makers to convert their holdings into cash with ease.
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Caterina
Fri Dec 06 2024
This limitation often leads to wider spreads in the market.
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Carlo
Fri Dec 06 2024
The wider spreads are necessary for market makers to increase their earnings per sale.
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