Hi, thank you so much for your fantastic blog! Quick question, what is the main criteria to define a stock's liquidity and how would you go about finding it? Thanks for your help! - Nico
yes but... the bid/ask spread, and market impact, and the high historical performance when commissions were high (illiquid stocks tend to cost less, so in the old days you bought more shares/investment dollar x higher commission rates), thus the net of implementation costs likely means this is no free lunch. Retail can maybe eek out some excess. Larger investors can't
Hi, thank you so much for your fantastic blog! Quick question, what is the main criteria to define a stock's liquidity and how would you go about finding it? Thanks for your help! - Nico
I look forward to the Onveston Letter blogs !!! They present interesting information that supplements my knowledge!!
yes but... the bid/ask spread, and market impact, and the high historical performance when commissions were high (illiquid stocks tend to cost less, so in the old days you bought more shares/investment dollar x higher commission rates), thus the net of implementation costs likely means this is no free lunch. Retail can maybe eek out some excess. Larger investors can't