#交易流动性 Widely Accepted Definition: A liquid market allows participants to execute a large number of transactions quickly, with little impact on prices. This means that there are sufficient buy and sell quotes in the market, with small bid-ask spreads, allowing investors to expect to complete transactions at average prices close to the current market price over a longer period.

• Black (1971) Definition: Liquidity is the ability to convert stock assets into cash, involving the execution costs of the process of monetization or conversion. Markets with good liquidity can monetize or convert quickly and at lower costs.

Measuring Liquidity

• Trading Volume: Liquidity can be measured by the size of trading volume. In markets with good liquidity, the premiums (discounts) required for transactions of the same size are smaller.