​Investment-Liquid Markets

​Investment-Liquid Markets 
Financial markets that are liquid and have minimal transaction costs are advantageous to investors. Better liquidity, as previously discussed, enables investors to easily acquire or sell an asset without unfavourable price repercussions.  

The expenses incurred when a trade occurs are referred to as transaction costs. To illustrate a busy market with several buyers and sellers, think of a stock exchange. The lesser the transaction costs, the better because they lessen the return on investments.