Hey guys im fairly new to the investing world! Im trying to learn all the basics from the bottom up and i've ran in to a problem (excuse me being dull).
All investors on youtube talk about liquidity and i've been trying to simplify and understand exactly what it is. Basically google results say that it's when buyers are easily accessible? (Stocks for example).
So I had to check up the opposite which is “Illiquidity”.
So my question is, what decides if the market for a certain asset is high in liquidity? Just demand?
Like say food, people are always gonna need to eat, therefore food is high in liquidity?
So liquidity is basically and simply just demand?
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