Chartered Institute of Stockbrokers (CISI) Professional Practice Exam 2026 – The All-in-One Guide to Master Your Certification!

Question: 1 / 400

In terms of liquidity, which asset type typically has the highest liquidity?

Real estate

Stocks of publicly traded companies

Stocks of publicly traded companies generally have the highest liquidity because they can be bought and sold quickly on major exchanges without significant price changes. This is due to the large number of buyers and sellers participating in the market, leading to a high volume of trading activity. The infrastructure supporting stock trading, including market makers and specialized trading platforms, facilitates quick transactions and enhances price stability.

In contrast, real estate is considered less liquid because selling property can take time due to various factors such as finding a buyer, negotiations, and the complexities involved in transferring ownership. Cryptocurrencies, while increasingly popular, can exhibit high volatility and may not always have a stable market as compared to established stocks, making them less liquid in certain situations. Commodities like gold or oil are also subject to market conditions and may not be as easily traded as stocks, further diminishing their liquidity compared to publicly traded companies.

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Cryptocurrencies

Commodities

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