Stock market right|thumb|Stock exchanges promote liquidity by accepting competitive bids from buyers. (Toronto Stock Exchange, 1910)|alt=A pricing board at the Toronto Stock Exchange The market liquidity of stock depends on whether it is listed on an exchange and the level of buyer interest. The bid/ask spread is one indicator of a stock's liquidity. For liquid stocks, such as Microsoft or General Electric, the spread is often just a few pennies – much less than 1% of the price. For illiquid stocks, the spread can be much larger, amounting to a few percent of the trading price.
Stock market right|thumb|Stock exchanges promote liquidity by accepting competitive bids from buyers. (Toronto Stock Exchange 1910)|alt=A pricing board at the Toronto Stock Exchange The market liquidity of stock depends on whether it is listed on an exchange and the level of buyer interest. The bid/ask spread is one indicator of a stock's liquidity For liquid stocks, such as Microsoft or General Electric, the spread is often just a few pennies – much less than 1% of the price. For illiquid stocks, the spread can be much larger amounting to a few percent of the trading price.