FYI: When it comes to mutual fund investing, very few concepts matter more than liquidity. This core concept impacts everything from the bid-offer spread to a fund’s ability to sell its holdings when the time comes.
For money market funds, liquidity refers to the extent to which a fund’s holdings can be sold for cash to meet near-term shareholder redemption requirements. Like other assets, money market funds want to be able to unload their holdings quickly and at stable prices, so liquidity measures how many buyers and sellers are present at any given time.
Regards,
Ted
https://mutualfunds.com/money-market-funds/liquidity-in-money-market-funds/
