So the expert who decided not to invest in something because “it only trades ten thousand shares a day” is looking at things cockeyed. For one thing, 99 percent of all stocks trade fewer than 10,000 shares a day, so fund managers who worry about liquidity are confined to 1 percent of all publicly traded companies. For another thing, if a company is a loser, the fund manager is going to lose money on the stock no matter how many shares it trades, and if it’s a winner, he or she will be delighted to unwind a position in the stock leisurely, at a profit.
