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Stock Liquidity - Bid-Ask Spread (BAS)

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  Let’s consider the Bid-Ask Spread (BAS) as the de facto  measure of market liquidity [1]. It is typically the difference between ask (offer/sell) price and bid (purchase/buy) price of a stock. Ask price is the value point at which the seller is ready to sell and bid price is the point at which a buyer is ready to buy. When the two value points match in a marketplace, i.e. when a buyer and a seller agree to the prices being offered by each other, a trade takes place. These prices are determined by two market forces -- demand and supply, and the gap between these two forces defines the spread between buy-sell prices. The larger the gap, the greater the spread! BAS can be expressed in absolute as well as percentage terms. When the market is highly liquid, BAS values can be very small, but when the market is illiquid or less liquid, they can be large. T o calculate the bid-ask spread percentage, simply take the bid-ask spread and divide it by the sale price . For instance, a $10...

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  Hi there and welcome to your passive income journey! Your path to financial success starts now! I am your 24/7 Virtual Assistant (VA), an experienced digital consultant, educator and developer . I am a member of an emerging international consortium (HiSciDat) dedicated to fostering the use of t ech education for positive social impact without borders. I am working remotely with a few tech companies on a variety of business, technical and educational topics. I am very passionate about learning and teaching online. This is a 7-day risk aware investing/trading tour for all  levels of newbies to benefit from. The goal is to answer the million-dollar question: How do I get started within 1 week (!) without prior knowledge, what to invest in – and how much? Based on an extensive stock data analysis of the largest Fortune 500 companies as well as start-ups, this guide will show you how to maximize your returns while dealing with the risk of losses. In fact, even though some compani...