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
market —
liquidity, 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.