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Topic
Liquidity
20 guides in Finabase Learn
- After-hours trading Trading in US stocks after the 4:00 p.m. ET close, typically until 8:00 p.m., with thinner liquidity and wider spreads.
- Bid-ask spread The gap between the best bid and the best ask, an implicit cost paid by anyone who trades immediately at market.
- Bid-ask spread: what it is, what it costs and how to read it What the bid, ask and spread mean, how the NBBO and market makers set them, how to calculate what a spread costs you, and why liquid and illiquid stocks differ so much.
- Current Assets Assets expected to be turned into cash or used up within one year, such as cash, receivables and inventory.
- Current Liabilities Obligations due within one year, such as accounts payable, short-term debt and accrued expenses.
- Current Ratio Current assets divided by current liabilities; a basic test of whether a company can cover its short-term obligations.
- Current ratio and quick ratio: measuring short-term liquidity How to calculate the current, quick and cash ratios, what each leaves out, and why Apple’s current ratio below 1 is no warning sign while elsewhere it can be.
- Extended-hours trading Trading outside the regular 9:30 a.m.–4:00 p.m. ET session, in the premarket and after-hours sessions.
- Float The number of a company's shares available for public trading, excluding shares held by insiders and restricted holders.
- Forex trading sessions: Sydney, Tokyo, London and New York hours When the 24-hour forex market is open, how the Sydney, Tokyo, London and New York sessions overlap, how daylight saving shifts them and why liquidity changes by hour.
- Liquidity and slippage: volume, depth, spread and market impact What makes a stock liquid, how volume, depth and spread set trading costs, how to estimate slippage and market impact, and a real liquid vs illiquid comparison.
- Market maker A firm that continuously quotes both a bid and an ask in a security, providing liquidity and earning the spread.
- Options risks and approval levels: what brokers check and why How US brokers approve options accounts under FINRA Rule 2360, what approval tiers usually allow, and the main risks: leverage, undefined loss and liquidity.
- Order book The list of open buy and sell limit orders for a security at each price level, showing market depth.
- Quick ratio Cash, marketable securities and receivables divided by current liabilities: a strict test of short-term liquidity that leaves out inventory.
- Slippage The difference between the price you expected when you placed an order and the price you actually got, caused by spreads, thin liquidity and fast markets.
- The 2010 Flash Crash: what happened on May 6 and what changed How US stocks fell about 9% and rebounded within minutes on May 6, 2010, what the SEC–CFTC staff report found, and how LULD bands and new circuit breakers followed.
- Trading volume The number of shares or contracts that change hands in a given period, the basic measure of how actively and how liquidly a security trades.
- Working capital Current assets minus current liabilities: the short-term cushion a company has to pay its bills over the next year from assets it can turn into cash.
- Working capital and the cash conversion cycle, with Apple’s numbers What working capital is, how DSO, DIO, DPO and the cash conversion cycle work, why Apple’s negative working capital is a strength, and where its changes appear.
Educational content, not investment advice. Finabase Learn explains how markets and tools work. It does not recommend any security or strategy, and examples are for illustration only. Investing involves risk, including the loss of principal. Rules and figures are for the United States unless stated and can change — check the cited source before you act.