Sentences with phrase «lack of market liquidity»

When a lack of market liquidity causes a gap between the price at which you place a trading order, and the price you receive.
Spreads are a function of market liquidity and in periods of limited liquidity, at market open, or during rollover at 5:00 PM ET, spreads may widen in response to uncertainty in the direction of prices, an uptick in market volatility, or lack of market liquidity.
Spreads are a function of market liquidity and in periods of limited liquidity, at market open, or during rollover at 5:00 PM ET, spreads may widen in response to uncertainty in the direction of prices or to an uptick in market volatility, or lack of market liquidity.

Not exact matches

It's an issue experts on both sides of the border — including at the Bank of Canada — have been warning investors about for a few months now: There's an alarming lack of liquidity in the credit market.
The lack of liquidity in the credit market has been a hot topic of late.
The issue of bond market liquidity has been a consistent theme over the past years or so with financial executives such as JP Morgan CEO Jamie Dimon, Blackstone CEO Steve Schwarzman, and Oaktree Capital's Howard Marks weighing in on the issue and generally pointing the finger at a lack of liquidity exasperating moves in financial markets.
It said some of the liquidity terms offered by hedge funds are «pretty unrealistic already» given the lack of liquidity in the credit markets.
The letter went on to highlight one of the key concerns in the marketliquidity, or the lack thereof.
This investor will also have sufficient angst about the difference between paper return and real return, and the lack of overall liquidity in the market.
The problem obviously is that the lack of any material liquidity in the market combined with the recent correction creates a risk that they may not see the actual cash returns for the paper gains they already booked.
In addition, I would point out that equities are purchased and traded by private individuals, who inherently have time value of money and liquidity preferences that are also priced into equities, given their specific limitations and characteristics (e.g., in the event of a stock market crash, liquidity may disappear at the exact moment it is most desired, and therefore the risk of that lack of liquidity is priced into the equity).
Only with bonds it's even harder to create a diversified portfolio using individual bonds on your own unless you (a) have a large amount of capital (typically bonds are sold in lots of $ 10,000 or $ 100,000) and (b) know how to trade bonds on the open market (transaction costs can be larger for bonds than stocks because of the spreads and lack of liquidity).
Investments in developing markets involve heightened risks related to the same factors, in addition to those associated with their relatively small size, lesser liquidity and lack of established legal, political, business, and social frameworks to support securities markets.
Investments in developing markets involve heightened risks related to the same factors, in addition to those associated with these markets» smaller size, lesser liquidity and lack of established legal, political, business and social frameworks to support securities markets.
In addition, the commodities markets are subject to temporary distortions or other disruptions due to various factors, including lack of liquidity, participation of speculators and government intervention.
Given the absence of a public trading market of our common stock, and in accordance with the American Institute of Certified Public Accountants Accounting and Valuation Guide, Valuation of Privately - Held Company Equity Securities Issued as Compensation, our board of directors exercised reasonable judgment and considered numerous and subjective factors to determine the best estimate of fair value of our common stock, including independent third - party valuations of our common stock; the prices at which we sold shares of our convertible preferred stock to outside investors in arms - length transactions; the rights, preferences, and privileges of our convertible preferred stock relative to those of our common stock; our operating results, financial position, and capital resources; current business conditions and projections; the lack of marketability of our common stock; the hiring of key personnel and the experience of our management; the introduction of new products; our stage of development and material risks related to our business; the fact that the option grants involve illiquid securities in a private company; the likelihood of achieving a liquidity event, such as an initial public offering or a sale of our company given the prevailing market conditions and the nature and history of our business; industry trends and competitive environment; trends in consumer spending, including consumer confidence; and overall economic indicators, including gross domestic product, employment, inflation and interest rates, and the general economic outlook.
The Funds could suffer losses related to its derivative positions because of a possible lack of liquidity in the secondary market and as a result of unanticipated market movements, which losses are potentially unlimited.
The relative lack of liquidity in the bond market and the fact that it is oriented for institutional investors rather than retail investors means that you really want to know where a bond has been trading before agreeing to buy or sell at a given price (be careful not to get ripped off).
FIC's blockchain - based platform will allow users to list, buy and sell any type of crypto or fiat fixed financial instruments avoiding the drawbacks of conventionally fixed income markets such as friction, lack of liquidity, lack of interoperability, asymmetry of information and operational risks.
With growing need for transparency triggered by MiFID II, the increasing fragmentation and lack of liquidity, the changing participants roles are key factors in the fixed income market reshaping.
Perhaps it is as simple as a lack of liquidity as US corporations take money out of money market instruments in order to repatriate funds under the new tax laws.
Using the current system, small - scale currencies are not on par with larger ones as they lack the volume of trading to achieve market - liquidity.
Not only are alternative investments very often poor performers, but their lack of liquidity means giving up the greatest opportunity that happens during a stock market crash: rebalancing.
A fund could suffer losses related to its derivative positions because of a possible lack of liquidity in the secondary market and as a result of unanticipated market movements, which losses are potentially unlimited.
Therefore, even if following our system completely, an individual's actual results may vary due to market factors including lack of liquidity, slippage, and commissions.
It could be said that one of the main drivers of the crypto - currency market is the available liquidity... or lack thereof.
Investments in developing markets involve heightened risks related to the same factors, in addition to risks associated with these markets» smaller size, lesser liquidity and the potential lack of established legal, political, business and social frameworks to support securities markets.
The Funds could suffer losses related to its derivative positions because of a possible lack of liquidity in the secondary market and as a result of unanticipated market movements, which losses are potentially unlimited.
An investor could suffer losses related to their derivative positions because of a possible lack of liquidity in the secondary market and as a result of unanticipated market movements, which losses are potentially unlimited.
My concern with such a small company (market cap of $ 21 million), is that there is a lack of liquidity and the stock has a high beta at a time when the overall market has shown signs of weakness.
The Fund could suffer losses related to its derivative positions because of a possible lack of liquidity in the secondary market and as a result of unanticipated market movements, which losses are potentially unlimited.
Liquidity Risk — Although there is a secondary market for trading P2P notes, market prices can decline significantly due to a lack of willing and available buyers.
This lack of liquidity is actually the reason why Dwellxchange launched its secondary selling market — an online portal that allows crowdfunding real estate investors to buy and sell their equity portions minus a 25 basis point fee.
Apart from general market risk, security risk, the lack of liquidity at times and higher volatility associated with mid caps stocks could affect the fund and its performance.
A fund could suffer losses related to its derivative positions because of a possible lack of liquidity in the secondary market and as a result of unanticipated market movements, which losses are potentially unlimited.
Another issue that is of concern to some market observers is the lack of liquidity, particularly for ETFs, in times of stress.
In the wake of the near collapse of U.K. mortgage lender, Northern Rock (NRK.L: Quote, Profile, Research), during last summer's credit and liquidity squeeze in world markets, McCreevy also expressed concern about the lack of regulatory framework in Europe for dealing with bank failure.
Investments in developing markets involve heightened risks related to the same factors, in addition to risks associated with these companies» smaller size, lesser liquidity and the potential lack of established legal, political, business and social frameworks to support securities markets in the countries in which they operate.
Unlike stock trading - for which automation has leveled the playing field for retail and institutional investors - the bond market lacks liquidity and price transparency except for the most liquid of bonds.
Depending on the features of the fixed income investment, other risks such as inflation and lack of liquidity, may affect its market value.
Investments in emerging markets, of which frontier markets are a subset, involve heightened risks related to the same factors, in addition to those associated with these markets» smaller size, lesser liquidity and lack of established legal, political, business and social frameworks to support securities markets.
Many of them are choking on a lack of liquidity at present, as the fall in the markets has driven:
But I would not give a lot of credence to those in the banks who complain that a lack of liquidity in the financial markets is harming the economy as a whole, and as such, we should loosen regulations on the banks.
Lack of regular analyst coverage and institutional buying are additional reasons why there is less liquidity in the micro-cap markets than in larger - cap stocks.
- Actual public float is only $ 40mn (on market cap of ~ 400mn) with the rest essentially owned by institutions that won't be selling in the near future meaning lack of liquidity could be a reason for a discount
When liquidity is scarce, prices tend to fall, though it is often masked by a lack of trading in an illiquid market.
A key reason that these losses can be permanent is many fund managers actively buy and sell bonds, meaning they are highly likely to sell positions at a loss after a rise in rates, decline in credit rating or when a lack of liquidity may mean they have to sell at a lower market price.
ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER - OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY.
Investments in emerging market countries involve heightened risks related to the same factors, in addition to those associated with these markets» smaller size, lesser liquidity and lack of established legal, political, business and social frameworks to support securities markets.
Most brokers require traders to enter limit day orders during extended trading sessions since the lack of liquidity makes market orders impossible in some cases.
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