Respuesta :

Time when we can get back our invested funds if we want or need them is referred to as liquidity.

Liquidity is defined as how easily or quickly a security can be bought or sold in the secondary market. Liquid investments are sold readily and  a hefty fee is not required to pay to get money when it is needed.

When we talk about stock’s liquidity it refers to how rapidly shares of a stock can be bought or sold. Sale and purchase is done  without impacting the stock price substantially.

Stocks which have low liquidity may be difficult to sell and may cause seller to take a bigger loss if he cannot sell the shares when he  wants to.

Liquidity risk is the risk which the investors won’t find a market for their securities, which may stop them from buying or selling whenever they want

To know more about liquidity here:

https://brainly.com/question/16376733

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