Liquidity is an important factor for stocks as it affects whether you can buy or sell your stocks easily and the difference between the buying and selling price, which is also known as the spread. If you purchase a stock which has a low liquidity, you may have problems selling it as there may be a lack of buyers. Even if there are buyers, they may not be willing to pay the price that you wish to sell your stock at, and this may result in an unfavourable selling price for you.
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