A security that rarely trades may be difficult to sell. A seller in a hurry may have to accept a lower price.
Investment liquidity
In a nutshell
Liquidity describes how easily an investment can be sold quickly at a price close to the observed market price.
On this page
Explained simply
A practical example
Hypothetical example: a share is quoted at CFA 5,000, but no buyer offers that price; an immediate sale at that level is not assured.
Further reading
Source: AMF — Investment liquidity.
Try it yourself
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What this means
Selling quickly near the quoted price illustrates good liquidity for this transaction.
Educational scenarios. Amounts and rates are fictional, not current market conditions.