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Re: A deleted message

Thursday, 04/21/2011 11:19:44 PM

Thursday, April 21, 2011 11:19:44 PM

Post# of 53798
I think you're confused, here is a dictionary definition of liquidity:

1. The degree to which an asset or security can be bought or sold in the market without affecting the asset's price. Liquidity is characterized by a high level of trading activity. Assets that can by easily bought or sold, are known as liquid assets.

2. The ability to convert an asset to cash quickly. Also known as "marketability".

So you should realize that for trade sizes in VTSI of say $2k or 25,000 shares, one doesn't move the bid/ask much. It's liquid. Placing an order for $20k (or 250,000 shares) will most likely move the bid or ask, and the stock is less liquid.

Post split, buying or selling $2k or $20k will affect the market in the same manner as it does now, it's just that you will be dealing with 250 or 2500 size trades instead. Liquidity will not be affected by the RS.

Volume:
Day Range:
Bid:
Ask:
Last Trade Time:
Total Trades:
  • 1D
  • 1M
  • 3M
  • 6M
  • 1Y
  • 5Y
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