Njau Posted June 5, 2020 Share Posted June 5, 2020 Explain to me, please. Quote Link to comment Share on other sites More sharing options...
0 Faraz Posted June 7, 2020 Share Posted June 7, 2020 Even though thinly traded securities don’t automatically translate into bad investment choices, they carry significantly greater risks. For example, investors who own thinly traded securities sometimes have to take on losses whenever they have to sell quickly since there are no readily willing buyers. Because of a lack of reliable supply of willing buyers, sometimes an investor may not be able to sell at all and hence the stock prices are too volatile and very risky. Furthermore, most traders do not go for thinly traded securities because of the lack of liquidity and also the fact that it is very challenging to buy and sell thinly traded stocks without stirring up other market participants thereby moving the stock price. Quote Link to comment Share on other sites More sharing options...
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Njau
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