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Mutual Funds Videos 165 videos

Finance: What is Efficient Markets Theory?
141 Views

What is the Efficient Markets Theory? The Efficient Markets Theory says that stocks trade at their fair value all of the time, assuming all informa...

Finance: What is a Fund of Funds?
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What is a Fund of Funds? A fund of funds is a mutual fund strategy that invests in other funds rather than investing in stocks or bonds. The underl...

Finance: What is the Russell Index?
4 Views

The Russell Index is a series of indices that tracks the progress of stocks in a given basket. Aw. We were hoping it tracked adorable Jack Russell...

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Finance: What is a Liquid Market? 17 Views


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Description:

A liquid market is a market featuring high trading volumes, i.e. investors actually want to put their cash to work.

Language:
English Language

Transcript

00:00

Finance allah shmoop What is liquid market Well it's one

00:07

that trades Ah lot High volume Lots of buyers Lots

00:11

of sellers Liquid lots of cash sloshing this way In

00:15

that way Go this way and that Did you ever

00:17

see a liquid market go this way and that That

00:20

little song Did you ever see a lassie Never mind

00:23

All right Weir Liquid markets Good Well because they implied

00:26

there's Lots of cash ready willing and able to be

00:29

put to work And that's usually a sign of a

00:31

healthy risk seeking active market versus risk averse one which

00:36

is you know hiding Ah liquid market means that investors

00:40

want to put their cash toe work that they have

00:43

actually saved cash along the way and or that they

00:46

have relatively easy access to credit And you can think

00:49

about it from the perspective of your kindly loving realtor

00:53

who wants a world where lots of people are buying

00:56

homes But in orderto have that happen you have to

00:58

have lots of people who are also selling homes at

01:01

the same time Otherwise prices just go higher and higher

01:04

with no supply to meet demand And at the end

01:06

of the day in real estate and it's in the

01:08

stock market while the most important thing yes that the

01:11

brokers get pays So that's a liquid market one that

01:15

trades a lot like it's Wet trading back and for

01:18

sloshing around not ice Where everything's you know all jammed 00:01:22.109 --> [endTime] up No needs heat or an animal or something

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