I am trying to figure out if there are any stock "liquidity" rankings
that I can access. Before I buy a stock, I would like to know how easy
the stock is to sell when the time comes.  So, I would like to be able
to take a look at a "ranking" in connection with my decision to
purchase a particular stock.  Please identify publicly available stock
liquidity rankings.

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Request for Question Clarification by pafalafa-ga on 20 Dec 2005 14:42 PST

patriotdad-ga,

I'm no trading pro, but it seems to me if a stock's average daily
volume of trades is a lot more than than the number of shares you
hold, then there shouldn't be any liquidity problems when it comes
time to sell.

Have you considered using daily trading volume as an easily-available
measure of liquidity?

What do you think?


pafalafa-ga

I work as a trader for a financial institution.  We deal a lot with
smaller stocks and liquidity is often an issue.

While it isn't a ranking system, it this formula is easy to use with
Excel and can be  handy in determining how easy it can be to get in
and out of a stock.

Try using this percentage formula.

(shares held or shares wanting to hold / average trading volume) * 100

it has been my experience with any result over 10%, you may have
problems getting in/out of in one day without drastically effecting
your prices.