A measure of "liquidity" for a stock market is:

Question

Quizplus · Accepted Answer

The ratio of stock market transactions over a period of time divided by the size, or market capitalization, of the stock market is an appropriate measure of liquidity for a stock market. This ratio, also known as the turnover ratio or trading volume, indicates the number of shares traded in a given period compared to the total number of shares outstanding. Higher turnover ratios indicate greater liquidity, as there are more buyers and sellers participating in the market, and it is easier to buy or sell shares without significantly affecting the market price.

A Measure of "Liquidity" for a Stock Market Is