What is "Liquidity" in stocks?

Perfect.

Thank you, Shaya.

And for liquidity, what are you referring to?

Just familiarize some of our audience members that that might not be so familiar with liquidity.

Both of you have hit on that a couple of times, but just mention what liquidity is, Shaina. >> So, liquidity is how easy it is to trade the stock.

So, I believe, and Mike can correct me if I'm wrong here, the SEC has an actual like liquidity um requirement for these daily liquid publicly traded products, whether it be a mutual fund or an ETF, you need to be able to liquidate the entire portfolio in a certain amount of time.

And a certain percentage of the portfolio has to be able to be liquidated in a day.

And so, that means that how easy is it to trade out of these stocks?

How active is the market maker in the space? because true micro caps have almost no liquidity because there's no market being made.

There's not a lot of bid ask spread.

Um, and so liquidity is referring to how easily could you liquidate the entire portfolio if you needed to.

And the SEC requires that publicly traded daily liquid instruments like ETFs and mutual funds maintain a certain percentage of their portfolio be liquid in uh one trading day and then the rest has to be within buckets.

But it is limited.

And so that's what we're referring