Liquidity is King
Liquidity is a vital, if nebulous, conundrum. For a securities exchange, it is of the essence. Traders love it. Corporate issuers consider it crucial when choosing where to list. Yet at times it can depend on nothing more substantial than market sentiment. It is proverbially ‘sticky’ - liquidity attracts liquidity, yet it can ‘dry up’ without warning. There when you don’t need it, liquidity is often missing when you do.