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On March 15, Hungarian Prime Minister Orban said that Hungary should not allow the European Union to use huge common loans for various purposes, including to support Ukraine, because this would reduce future generations of Europeans to long-term bonded labor.March 15, data released by El Al recently showed that the companys profits in 2024 increased significantly, setting a record high. Since the outbreak of a new round of Israeli-Palestinian conflict on October 7, 2023, many international airlines have suspended flights to Israel, and the ticket prices of airlines that are still in operation have increased significantly. By maintaining the operation of most routes, El Als net profit reached a record high of US$130 million in 2023, and it soared to about US$545 million last year. Data shows that the companys operating income in 2024 also increased by about 37% compared with 2023. The Times of Israel reported that the company almost monopolized the route from Israel to North America, and the average passenger load factor was as high as 96%, which became the main factor for its substantial profit growth.March 15th news, U.S. Transportation Secretary Sean Duffy said on the 14th that the 737 MAX model produced by U.S. aircraft manufacturer Boeing has had many accidents in recent years, has lost the trust of the American people, and needs to be strictly regulated.March 15, according to NBC News, U.S. Vice President Cyrus Vance admitted on Friday that Musk made "mistakes" in the process of mass layoffs of federal employees, and emphasized that he believes "there are a lot of good people working in the government." Vances more moderate tone is in stark contrast to the drastic approach taken by Musk. In the first seven weeks of Trumps second presidential term, thousands of government employees were fired, which was the core of Musks work, and these layoffs have triggered multiple lawsuits and have been resisted by judges. Musk has broadly described federal workers as "liars" and believed that they are not trustworthy and cannot do their jobs well. When asked about Musks remarks, Vance said: "I think its obvious that some people are just getting paid but not working. But how many such people are there? I dont know, in a federal workforce of 3 million employees, I dont know if its a few thousand or a lot more than that. But this does not affect or detract from the fact that there are indeed a lot of good public servants doing important work."Market News: The United States has designated South Korea as a "sensitive" country in discussions about nuclear weapons.

What is liquidity?

Eden

Oct 25, 2021 13:27

What is liquidity?

Liquidity is used in finance to describe how easily an asset can be bought or sold in the market without affecting its price – it can also be known as market liquidity. When there is a high demand for an asset, there is high liquidity, as it will be easier to find a buyer (or seller) for that asset.

Cash is considered the most liquid asset because it is very stable, can be readily accessed and easily spent. Therefore, cash is commonly used to gauge the liquidity of other markets. For example, the liquidity of a stock is measured by how quickly and easily it can be converted to cash. If it is difficult to convert an asset into cash, then it is considered illiquid.

One way to evaluate the level of market liquidity is by observing the bid/ask spread – as the liquidity of an asset increases, the bid/ask spread usually tightens.


Liquid markets

In a liquid market it is easy to execute a trade quickly because there are numerous buyers and sellers. For instance, with a daily trading volume of over $5 trillion, forex is considered the largest and most liquid market in the world.

Large stock markets, such as the New York Stock Exchange, are also considered highly liquid because thousands of shares change hands every day. But the liquidity of an individual stock can vary depending on factors such as its market capitalisation, the exchange its shares are traded on and whether it is included on an index. Usually blue-chip stocks such as Microsoft, Google and Apple will be extremely liquid.