Translation under review. The illustrations are still in Portuguese.
"The app delivery rider knows what liquidity is: it's the area where he gets the most orders and makes the most money. The market is the same."
You stopped in the middle of this chapter.
The delivery rider's Friday night. A comparison with people who do deliveries through an app. Downtown, near the exit of a concert, there are thousands of orders at the same time. He accepts a ride in seconds, finishes it, and another one is already waiting. Everything moves fast.
On an empty street, at 3 a.m., one order shows up every two hours. He can wait all night and make nothing.
That's liquidity. It's how easy it is to turn something into money, fast and without losing value along the way. Lots of people buying and selling: high liquidity. Few people: low liquidity.
In the market. The of the biggest companies in Brazil has millions of people trading it all the time. You buy or sell in an instant, at the price on the screen. It's like downtown. The share of a small, unknown company is like the dark street. If you need to sell fast, you'll have to give a discount, because almost nobody wants to buy.
The invisible cost. In something that trades a lot, the gap between the buyer's price and the seller's price is a few cents. In something that barely trades, you can lose a good chunk just by getting in and out.
Words in this chapter
Index
It's not a company, it's an average. The stock exchange index shows whether the overall mood is good or bad.
