What is the difference between liquidity and liquidity?

The differences between liquidity and liquidity are as follows:

1, different concepts.

Liquidity refers to the liquidity of assets. The greater the liquidity, the easier it is to realize, and the liquidity of stocks is greater than that of real estate. It is the relationship between the time scale of investment (how long it takes to sell) and the price scale (discount relative to the fair market price). Liquidity refers to the ability to buy and sell an item quickly in the market without causing large price fluctuations. Usually refers to liquidity.

2. The emphasis is different.

Liquidity emphasizes the tradeability of assets, and liquidity further emphasizes the transaction price and speed of assets on the basis of tradeability. Liquidity indicates the possibility of trading, and liquidity reflects the difficulty of trading. Good liquidity does not mean good liquidity, and full circulation does not mean full circulation.

To put it simply: liquidity refers to whether assets can be quickly converted into cash; Liquidity refers to whether assets can be transferred to a third party, that is, whether assets can be bought and sold. For example, current savings have good liquidity, bad liquidity, good liquidity of houses and bad liquidity.

3. Different expressions

Liquidity means that the more outstanding shares, the greater the turnover. The tradeability and liquidity of stocks among different investors are usually measured by the number of tradable stocks, the volume of stocks and the sensitivity of stock prices to the volume.

The more tradable shares, the greater the trading volume, the less sensitive the price is to the trading volume (the price will not change with the trading volume), and the better the liquidity of the stock, and vice versa. The circulation of stocks enables investors to sell stocks in the market and get cash.

Extended data:

Characteristics of liquidity:

The mobile market is characterized by buyers and sellers at any time. Another definition of liquidity is the possibility that the price of the next transaction is equal to the price of the previous transaction.

If a market has many buyers and sellers, then the liquidity of this market is very high. Such a market is called a deep market. In such a market, ordering has little effect on commodity prices. The number of times a commodity is bought and sold can be regarded as the liquidity of the commodity.

Generally, traders prefer to invest in markets with high liquidity, such as stock trading, rather than markets with low liquidity, such as real estate. The reason is that in a illiquid market, traders may be forced to buy and sell a commodity at an unfavorable price. Speculators and market makers bring liquidity to the market. One of the reasons against Tobin tax is that Tobin tax hinders currency speculation, reduces the liquidity of foreign exchange market and increases its volatility.

The liquidity of some common assets generally has the following relations: cash >; Demand deposits > short-term treasury bonds > blue-chip stocks > common stocks > long-term bonds > small-sized houses in the city center > large-sized houses in the suburbs.

Not only individual investors are in danger of not flowing, but also large investors are in danger. The central bank can intervene in the amount of money put in by three major monetary policy means, thus regulating liquidity.

References:

Baidu encyclopedia-liquidity