The difference in liquidity there exists for institutional investors—it’s faster and easier to sell a billion dollars of T-bills than a billion dollars of Amazon. For a retail investor with maybe a thousand bucks in a single position, the difference is irrelevant.
Why are home-country government bonds more liquid than stocks? Publically traded stocks can be sold quite fast.
Trading shares on an exchange sometimes gets suspended, for example if the company is in financial difficulties.
The difference in liquidity there exists for institutional investors—it’s faster and easier to sell a billion dollars of T-bills than a billion dollars of Amazon. For a retail investor with maybe a thousand bucks in a single position, the difference is irrelevant.
I think this topic is rather about retail investing than about how to be an institutional investor.
Exactly my point. It’s a distinction that exists in the literature, but it’s not relevant here.