Investing Tip #49: Don’t Buy Illiquid Shares
June 18, 2014 at 03:05 AM EDT
Trading Liquidity, a ratio of the average daily trading volume and the shares outstanding, indicates demand and supply of the stock. While blue chips shares have generally high trading liquidity, shares of companies with small capital or small free float has low liquidity. You may not find buyers or correct price when you need to [...] The post Investing Tip #49: Don’t Buy Illiquid Shares appeared first on The College Investor .
