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Market liquidity, the Glossary

In business, economics or investment, market liquidity is a market's feature whereby an individual or firm can quickly purchase or sell an asset without causing a drastic change in the asset's price.^[1]

35 relations: A Treatise on Money, Asset, Bank, Bank run, Bid–ask spread, Business, Cash, Central bank, Dark pool, Economics, Federal Reserve, Funding liquidity, Futures exchange, General Electric, Goods and services, Gresham College, Interbank lending market, Investment, Liability (financial accounting), Liquidity risk, Listing (finance), Market depth, Market impact, Market maker, Microsoft, Money supply, On the run (finance), Open interest, Open market operation, Ordinary course of business, Price discovery, Speculation, Stock, Stock exchange, Subprime mortgage crisis.

A Treatise on Money

A Treatise on Money is a two-volume book by English economist John Maynard Keynes published in 1930.

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Asset

In financial accounting, an asset is any resource owned or controlled by a business or an economic entity.

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Bank

A bank is a financial institution that accepts deposits from the public and creates a demand deposit while simultaneously making loans.

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Bank run

A bank run or run on the bank occurs when many clients withdraw their money from a bank, because they believe the bank may fail in the near future.

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Bid–ask spread

The bid–ask spread (also bid–offer or bid/ask and buy/sell in the case of a market maker) is the difference between the prices quoted (either by a single market maker or in a limit order book) for an immediate sale (ask) and an immediate purchase (bid) for stocks, futures contracts, options, or currency pairs in some auction scenario. Market liquidity and bid–ask spread are financial markets.

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Business

Business is the practice of making one's living or making money by producing or buying and selling products (such as goods and services).

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Cash

In economics, cash is money in the physical form of currency, such as banknotes and coins.

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Central bank

A central bank, reserve bank, national bank, or monetary authority is an institution that manages the currency and monetary policy of a country or monetary union.

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Dark pool

In finance, a dark pool (also black pool) is a private forum (alternative trading system or ATS) for trading securities, derivatives, and other financial instruments. Market liquidity and dark pool are financial markets.

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Economics

Economics is a social science that studies the production, distribution, and consumption of goods and services.

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Federal Reserve

The Federal Reserve System (often shortened to the Federal Reserve, or simply the Fed) is the central banking system of the United States.

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Funding liquidity

Funding liquidity is the availability of credit to finance the purchase of financial assets.

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Futures exchange

A futures exchange or futures market is a central financial exchange where people can trade standardized futures contracts defined by the exchange.

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General Electric

General Electric Company (GE) was an American multinational conglomerate founded in 1892, incorporated in the state of New York and headquartered in Boston.

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Goods and services

Goods are items that are usually (but not always) tangible, such as pens or apples.

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Gresham College

Gresham College is an institution of higher learning located at Barnard's Inn Hall off Holborn in Central London, England.

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Interbank lending market

The interbank lending market is a market in which banks lend funds to one another for a specified term. Market liquidity and interbank lending market are financial markets.

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Investment

Investment is traditionally defined as the "commitment of resources to achieve later benefits".

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Liability (financial accounting)

In financial accounting, a liability is a quantity of value that a financial entity owes.

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Liquidity risk

Liquidity risk is a financial risk that for a certain period of time a given financial asset, security or commodity cannot be traded quickly enough in the market without impacting the market price.

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Listing (finance)

In corporate finance, a listing refers to the company's shares being on the list (or board) of stock that are publicly listed.

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Market depth

In finance, market depth is a real-time list displaying the quantity to be sold versus unit price. Market liquidity and market depth are financial markets.

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Market impact

In financial markets, market impact is the effect that a market participant has when it buys or sells an asset. Market liquidity and market impact are financial markets.

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Market maker

A market maker or liquidity provider is a company or an individual that quotes both a buy and a sell price in a tradable asset held in inventory, hoping to make a profit on the bid–ask spread, or turn. The benefit to the firm is that it makes money from doing so; the benefit to the market is that this helps limit price variation (volatility) by setting a limited trading price range for the assets being traded. Market liquidity and market maker are financial markets.

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Microsoft

Microsoft Corporation is an American multinational corporation and technology company headquartered in Redmond, Washington.

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Money supply

In macroeconomics, money supply (or money stock) refers to the total volume of money held by the public at a particular point in time.

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On the run (finance)

In finance, an on the run security or contract is the most recently issued, and hence most liquid, of a periodically issued security.

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Open interest

Open interest (also known as open contracts or open commitments) refers to the total number of outstanding derivative contracts that have not been settled (offset by delivery).

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Open market operation

In macroeconomics, an open market operation (OMO) is an activity by a central bank to exchange liquidity in its currency with a bank or a group of banks.

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Ordinary course of business

In United States law, the ordinary course of business (OCB) covers the usual transactions, customs and practices of a certain business and of a certain firm.

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Price discovery

In economics and finance, the price discovery process (also called price discovery mechanism) is the process of determining the price of an asset in the marketplace through the interactions of buyers and sellers. Market liquidity and price discovery are financial markets.

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References

[1] https://en.wikipedia.org/wiki/Market_liquidity

Also known as Asset markets, Illiquid, Illiquid asset, Illiquid securities, Illiquidity, Liquid assets, Liquid securities, Liquid security, Liquidity expansion.

Market liquidity, the Glossary

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References