Illiquidity is often used in the context of risk.
This means that the beneficiary bears the risk of fraud and Illiquidity.
The risk of Illiquidity does not apply only to individual investments:
whole portfolios are subject to market risk.
The gross domestic product numbers released on Friday showed government spending helping to prop up weak demand, but private investment growth had virtually collapsed,
with a crisis in the shadow banking sector causing Illiquidity in the economy.
Gross domestic product numbers released on Friday had shown government spending helping to prop up weak demand, while private investment growth had virtually collapsed,
with a crisis in the shadow banking sector causing Illiquidity in the economy.
The bid-ask spread can widen dramatically during periods of Illiquidity or market ask, since
traders will not be willing to ask a price beyond a certain threshold, and sellers may not be willing to accept forex below a certain level.
The bid-ask spread can
widen dramatically during the periods of market turmoil or Illiquidity, since traders will not be willing
to buy at a price beyond a certain threshold, and sellers also are not willing to accept prices below a certain level.