EMC How high can it go? Message Board

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Technology Stocks : EMC How high can it go?

EMC 29.05

0.0%

Sep 15 5:00 PM EST

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To: Bob Frasca who wrote (8686)	1/11/2000 3:20:00 PM
From: GVTucker	Read Replies (1) of 17183

Bob, RE: The very definition of liquidity is how easy it is to move the stock. Cash is the ultimate liquid asset. Real estate really isn't liquid because it's hard to move and it takes time to close the transaction. In terms of stock, it's harder to sell 10,000 shares of a $100 stock then it is to sell 10,000 shares of a $50 stock. Cash is indeed the ultimate liquid asset. And that's why the second part of this statement makes no sense. The two transactions are not comparable cash amounts, and thus you're looking at apples and oranges. Liquidity is as much a psychological issue as it is anything else. For a retail investor, you probably are right. But a retail investor doesn't need to worry as much about liquidity, because whether you're executing a trade for 100 or 1,000 or 10,000 shares, liquidity is no big deal. When you're an institution that needs to move $100mm of stock, liquidity is a big deal. And the stock's price is irrelevant to this liquidity.

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