Go back

Market Liquidity

Related terms: liquidity, market liquidity, liquidity event, financial instruments, asset management

What is market liquidity?

Market liquidity refers to the ease with which assets can be bought and sold in a market without causing significant price changes. High liquidity indicates that transactions can occur quickly and in large volumes, ensuring stable prices.

Importance of market liquidity for family offices

For family offices, market liquidity is crucial as it affects the ability to swiftly adjust investment portfolios in response to market conditions. High liquidity allows family offices to efficiently manage risk and seize investment opportunities without incurring substantial transaction costs or price impacts.