Liquid Market
A market with a high volume of activity, giving traders ample opportunity to buy or sell large quantities at any time and for low transaction costs.
Related terms
Illiquid Market
A market in which assets are difficult to sell due to a lack of interested buyers or available assets, often with large bid-ask spreads. Sellers may be forced to lower prices or hold assets longer than preferred to convert them to cash without losing significant value.
Read full definitionLiquidity
How easily an asset can be converted into cash, or how readily a business can meet its short-term obligations. Strong liquidity means funds are available when and where they are needed.
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Adjustment
The impact on a share price of a company paying out dividends on the ex-date. The price takes a slight dip because money flows out of the company to shareholders, with the dividend adjustment occurring at the close of business before the ex-dividend date.
Read full definitionAUS 200
A term for the Australian Securities Exchange index (ASX 200), which tracks the top 200 companies by market capitalisation listed on the Australian stock exchange.
Read full definitionBear Market
Any market that experiences a fall of around 20% or more from its recent high. Most commonly applied to stock markets, the term can also be used for anything traded, including currencies and commodities. It is the opposite of a bull market.
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A fixed-income investment representing a loan made by an investor to a borrower, typically corporate or governmental. It works like an I.O.U. between lender and borrower that includes the details of the loan and its payments.
Read full definitionBull Market
Any market in which prices are rising or expected to rise imminently. Typically applied to stock markets, the term can also be used for anything traded, including currencies and commodities. It is the opposite of a bear market.
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A marketplace where securities are paid for and delivered immediately at the point of sale. A stock exchange is a cash market because investors receive their shares as soon as they have paid for them.
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