Liquidity of Large Stocks
Sep 25th, 2006 | By Penny Sleuth Contributor | Category: Investing Strategies, Macroeconomics
The illiquidity of smaller stocks is the most credible argument against the existence of a small-cap premium and perhaps the one most difficult to dismiss... [It's true,] small companies can be extremely illiquid. Active small-cap investments are therefore unlikely to replicate simple benchmark or historical results. Because the large-cap benchmarks ...read more
