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Browse terms140
Browse terms140

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Liquidity

The ability to buy or sell a security promptly without materially moving its price; private and restricted securities are usually less liquid.

What traders should verify

For Liquidity, verify the share count or instrument population, price timestamp, venue, restrictions, volume, spread, and whether the data describes primary or secondary activity.

Do not conflate

Liquidity is not a guarantee of executable price, current liquidity, unrestricted resale, or the company's cash proceeds.

Primary source

SEC definition

Source boundary: this glossary reflects SEC staff views and is not a Commission rule, regulation, or statement. Check the linked source for current wording and legal context.

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