Briefly Explain on Liquidity Risk
Subject: Finance | Topics: ,

Principle objective of this article is to briefly explain on Liquidity Risk. Here discuss what liquidity risk comes down to how easily a person can move an resource, whether it is a commodity, stock, bond, real-estate, art or any other asset which includes value. It can be equated to some supply and demand design where more supply can lead to dropping prices and greater demand can lead to higher prices. In fact, liquidity risks appear whenever there’s a market correction of some type. At times like most of these, the seller (who often carries liquidity risk together with whatever asset he owns) must slow up the price on the resource to a level that isn’t just inviting to the few buyers on the market, but a steal.

Related Finance Paper: