The Liquidity Double Standard in the Stock Market The stock market has long been accused of favoring well heeled investors. However, a recent trend suggests that even thinly traded stocks can occasionally catch a break.
A closer look at liquidity metrics reveals a surprising pattern: many top performing stocks owe their success to a relatively straightforward sign of liquidity strength.
To understand the implications for investors and market watchers, consider the world of thinly traded stocks. Volumes above 400,000 shares per day are generally considered healthy.