Plot twist: somebody (many somebodies) expected retail investors to be their source of liquidity.
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Here is my usual clarification for when I use jargon words: Liquidity is the property of assets where you can conveniently turn them into money. Stock in a publicly traded company is very liquid: you can find a buyer any time the markets are open, at low cost/slippage.
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Houses or closely held businesses are illiquid: they are hard to sell when you want to (weeks/months of work involved, high transaction costs) and, if you *need* to sell them, you might have to sell them at a large discount to their intrinsic value.
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Liquidity is not binary; you can think about it in terms of a depth (liquid, get it); you can sell millions of dollars of Google stock without meaningfully affecting the price, but selling billions is probably out of reach. Bitcoin is liquid... but not to material levels.
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