Table of Contents Toggle What is Stock Market Liquidity?Why is Liquidity Important in Investment Decisions?1. Easier to Enter and Exit Positions2. Reduced Price Slippage3. Flexibility in Managing Risks4. More Accurate Pricing5. Lower Transaction Costs6. Better Investment OpportunitiesRisks of Low Liquidity1. Difficulty in Buying or Selling2. Increased Volatility3. Longer Holding PeriodsConclusionFAQs1. How can I check the