Micro-Cap Basics – Liquidity, the Liquidity Premium, and Trading an Illiquid Stock

A common feature of some, but not all, micro-cap stocks is low liquidity. This is extremely common for stocks not trading on a major exchange, such as the OTC or OTCQB. But what does low liquidity mean exactly? And how do investors deal with the liquidity premium in valuing a particular company? Liquidity – The … Read more