What is the implication of strong market liquidity on a company's shares?
A)the demand of the company's shares is weak.
B)the supply of the company's shares is weak.
C)the supply of the company's share is strong.
D)the demand of the company's share is strong.
E)None of the above.

Question

Quizplus · Accepted Answer

Strong market liquidity typically indicates a high level of trading activity and ease of buying and selling. This generally leads to an increase in demand for a company's shares and can result in a higher share price. Therefore, the implication of strong market liquidity is that the demand for the company's shares is strong.

What Is the Implication of Strong Market Liquidity on a Company's