The Money PagesWhat If Nobody Wants to Buy?
Noor got an $8 offer yesterday. That doesn’t mean someone will pay $8 today.
In a pretend classroom market, someone offers Noor $8 for her paper card for a share in a pretend company. Noor keeps it.
The next day, she wants to sell. But nobody offers $8 now.
Yesterday's offer isn't money in her hand. To sell, she needs a buyer and a price they both agree on.
Liquidity means how easily something can be sold for money without having to cut its price a lot. Some things are harder to sell than others.
Real investments can lose value. A price you saw yesterday isn't a promise of what you'll get today.
Money words
Liquidity
How easily something can be sold for money without a big cut in its price.
An offer is not money in your hand. A sale needs a buyer and an agreed price.
