6. Liquidity Risk
This risk is associated with the ability to sell out our stocks easily without depressing the price level further and causing potential buyers to retreat to sideline in anticipation of more fire sales coming.
It is true that when we buy stocks which have low liquidity; we can have all the time in the world to buy slowly. I am not sure if the opposite is true when you need to sell? Do you really have the time in the world to sell slowly? Probably, you may have urgent need to raise money; otherwise, why would you be selling?
Investment Idea: City Developments Limited - We would just like to thank everyone who participated in last night’s InvestingNook LIVE Webinar. Many who were unable to attend requested for a replay of ...
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