Liquidity is the ease with which a stock can be bought or sold without a big impact on the share price. In general, this can be determined by the average daily trading volume of the stock in a particular stock market. The more actively traded a stock is, the more liquidity it has, and hence easier to dispose of on a particular stock market.
A thin trader is a stock with a small average daily trading volume. Thin or low liquidity traders trade a few hundred to a few thousand shares daily, compared to tens if not hundreds of thousands for, say, a Canadian bank.
A lack of liquidity or being illiquid, can make it hard to sell any stock in a hurry without accepting a big cut in price. That’s why successful investors prefer liquidity over a lack of liquidity.
However, unexpected bad news can make liquidity dry up in a heartbeat.
For lasting investment safety, you need to buy well-established, prosperous companies—with high liquidity—like those we recommend in our publications, even Stock Pickers Digest (some of its recommendations do fit that description), and you need to diversify.
All in all, for a sound long term investing strategy we recommend using our three-part Successful Investor philosophy:
Invest mainly in well-established companies;
Spread your money out across most if not all of the five main economic sectors (Manufacturing & Industry; Resources & Commodities; the Consumer sector; Finance; Utilities);
Downplay or avoid stocks in the broker/media limelight.
Theme investing, particularly when snatched from the latest headlines, may seem appealing—but more often than not will lead to poor returns
Theme investors zero in on something that’s going on in the world—in business, politics, technology or society as a whole—and try to cash in… Read More
There are big differences in penny stock vs. regular stock investing—mostly centred around risk
In assessing the differences between a penny stock vs. a regular stock, it’s important to define the two. Many of the best “regular stocks” are blue chip stocks. Blue chip companies can… Read More
Exchange traded funds (ETFs) are set up to mirror the performance of a stock market index or subindex. They hold a more or less fixed selection of securities that represent the holdings that go into calculating the index or sub-index.
Today, we look at two Canadian ETFs… Read More
Discovering top penny shares to invest in can lead to a big pay day if you choose correctly. Here are the factors to watch for—or avoid—when analyzing pennies
Ultimately, penny shares to invest in should make up only a small part of most investor portfolios. And… Read More
If you want to find a high-quality Canadian energy ETF to invest in, then you need to look at the stocks it holds, its liquidity, and more
High-quality energy stocks—or resource stocks, generally—can provide you with a hedge against inflation as well as other hidden benefits,… Read More
Renewable energy ETFs are increasingly popular, and not just with socially conscious investors. Still, are these ETFs good investments?
A number of renewable energy ETFs have emerged over the past few years as concerns over the environment have grown. However, some of the stocks in those… Read More
Utility investments typically benefit from stronger economic activity, and a top Canadian utilities ETF will let you take advantage of this—if you watch for low fees and sound stock holdings
Utility stocks are shares in companies that provide electric power, telecommunications, pipeline services and so on… Read More
To determine when to buy an ETF, some investors use technical analysis and other tools. But you need to dig deeper.
Investors often wonder: what is a good entry point when purchasing a stock or an ETF?
The first question before asking when to buy an ETF… Read More
Traditionally, there have been several options for parents and grandparents looking to make investments for children. But here’s how to choose the best investments for children in 2022.
Taking the time to pick the right investments for children and grandchildren is a worthwhile endeavour. If the… Read More
More and more, exchange-traded funds (ETFs) are finding their way into the portfolios of investors.
That’s because, unlike many other financial innovations, they don’t load you up with heavy management fees, or tie you down with high redemption charges if you decide to get out of them… Read More
The privacy of the site/store visitor is very important to TSI Network, and is respected at all times. The information we receive from customers helps us to personalize and continually improve your online experience at TSI Network.
We do not collect or disclose personal information, except when it is provided to us voluntarily by the site/store visitor with their consent.
We store subscriber and password files containing personal information securely. These files are stored in secure areas that are not accessible to the general public. We are always working to ensure the security of your personal information.
What personal information do we collect?
The information we receive from customers helps us personalize and continually improve your online experience at TSI Network. TSI Network may collect personal information online for all legal purposes, which include, but are not limited to:
Information You Give Us: We receive and store any information you enter on our website or give us in any other way through sign-up forms or ordering forms for publications and services. You can choose not to provide certain information, but then you might not be able to take advantage of many of our services and features. We use the information that you provide for such purposes as responding to your requests, customizing your web browsing experience for you, improving our website, and communicating with you.
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Information from Other Sources: For reasons such as improving personalization of our service (for example, providing better product recommendations or special offers that we think will interest you), we might receive information about you from other sources and add it to our account information. We also sometimes receive updated delivery and address information from our shippers or other sources so that we can correct our records and deliver your next purchase or communication more easily.
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Although you may be able to access some of our websites without being required to register or provide personal information, certain websites and sections of our websites may require registration. In addition, if you choose to contact us to ask a question, we will collect your personal information so that we can respond to your question.
To make the visitor’s experience on our website easier, we may use per-session “cookies” (session identifiers) to track the state of the visitor session. This “cookie” is destroyed when your session with our website is over.
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Does TSI Network Use the Information It Receives?
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TSI Network will not accept responsibility for information posted in the comments.
Please note that we reserve the right to delete or edit all comments. As well, we may close posts to further comments at our discretion. If a user repeatedly abuses our comment policy, we may also revoke that user’s access to our comments section.
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Special Note for Parents
TSI Network does not sell products for purchase by children. If you are under 18, you may use TSI Network's site only with involvement of a parent or guardian
How do we protect your personal information?
TSI Network does everything possible to prevent unauthorized intrusion to its websites and the alteration, acquisition or misuse of personal information by unauthorized persons. Notably passwords submitted by users of our websites are encrypted using encryption mechanisms. However, TSI Network cautions visitors to its websites that no network, including the Internet, is entirely secure. Accordingly, we cannot be responsible for loss, corruption or unauthorized acquisition of personal information provided to our websites, or for any damages resulting from such loss, corruption or unauthorized acquisition.
How do we maintain the integrity of your personal information?
TSI Network has procedures in place to keep your personal information accurate, complete and current for the purposes for which it is collected and used. You may review the information that you have provided to us and where appropriate you may request that it be corrected. If you wish to review your personal information please send a request to: email@example.com.
How do I withdraw my consent to use Personal Information? Access, Correction, Inquiries and Complaints
If you wish to request access to, or correction of, your personal information in our custody or control, or find out how we've used or disclosed that information, please make your request in writing to us. We may need to verify your identity before searching for or providing you with personal information. In some circumstances, we may not be able to provide access to your personal information, for example if it contains the personal information of other persons, if it constitutes confidential commercial information, or if it is protected by solicitor-client privilege. If we deny your request for access to, or refuse a request to correct, your personal information, we will advise you of the reasons for this refusal.
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The provision of information by you is entirely voluntary and you have the right not to provide information. Subject to applicable law, you may have the right to receive certain information as to whether or not personal information relating to you is held by TSI Network and to obtain a copy of such information that is sought. You may also have the right to require information, where appropriate, to be erased, blocked or made anonymous or to have data updated or corrected. If you do not wish TSI Network to hold information about you or if you wish to have access to information, modify information, or object to any processing of information or if you have questions please contact us.
What Choices Do I Have?
As discussed, you can always choose not to provide information even though it might be needed to make a purchase or to take advantage of TSI Network features.
You can add or update certain information as explained in the section "How Can I Change My Information?"
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Changes to this Policy
This Policy is the sole authorized statement of TSI Network's practices with respect to the collection of personal information through TSI Network's websites and the subsequent use and disclosure of such information. Any summaries of this Policy generated by third party software or otherwise (for example, in connection with the "Platform for Privacy Preferences" or "P3P") shall have no legal effect, are in no way binding upon TSI Network, shall not be relied upon in substitute for this Policy, and neither supersede nor modify this Policy.
TSI Network may revise this Policy from time to time.
Legal Notices and Disclaimers
The contents of this web site and our publications are based upon sources of information believed to be reliable, but no warranty or representation, expressed or implied, is given as to their accuracy or completeness. Any opinion reflects the Successful Investor’s judgment at the date of publication and neither the Successful Investor, nor any of its affiliated companies, nor any of their officers, directors or employees, accepts any responsibility in respect of the information or recommendations contained in the publications or on this web site. Moreover, the information or recommendations are subject to change without notice.
Information presented on this web site or contained in our publications is not an offer, nor a solicitation, to buy or sell any securities referred to on the web site or in the publications. The material is general information intended for recipients who understand the risks associated with an investment in any securities referred to in the publications or on this web site. The Successful Investor has made no determination regarding whether an investment, course of action, or associated risks are suitable for the recipient.
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