Liquidity refers to how easily you can buy or sell an investment without significantly affecting its price. An investment with high liquidity can be converted to cash quickly. Investments with low liquidity may be hard to sell, or you might have to accept a lower price to find a buyer.
Apple stock has high liquidity because thousands of shares trade every minute, so you can sell 100 shares instantly at the current market price. In contrast, shares of a small local company might have low liquidity, meaning you could wait days to find a buyer or have to accept a 10 percent discount to sell quickly.
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