Illiquid Stocks Consistently Outperform The MarketRupert Hargreaves
The search for value often draws investors into illiquid markets, and to some, this can be a daunting prospect. However, research suggests that illiquid stocks outperform their liquid counterparts over the long-term.
In what has been called an illiquidity-anomaly, several studies published over the past few decades have shown that the market rewards illiquid stocks, although it's unclear exactly why. One of the earliest studies on the topic was conducted by researchers Amihud and Mendelson who used bid . . .
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