The market for a security should have both breadth and depth in order to minimize the amount of time required to convert it into cash.

Question

Quizplus · Accepted Answer

The market for a security with both breadth and depth means that there are many active buyers and sellers, resulting in a more liquid market. This increases the likelihood of a quick conversion of the security into cash, minimizing the time required to sell it.

The Market for a Security Should Have Both Breadth and Depth