The big problem with small cap liquidity
Small cap stocks have always been harder to trade than large caps, and liquidity issues have worsened over the last decade. Volume is concentrated at the end of the day, with nearly 23%1 of small caps trading after 3.30 p.m. In addition, they not only have more off-exchange volume than large caps, but also more hidden on exchange volume. John Healy discusses how Capture can help with challenges of finding small cap liquidity.
1 TAQ, 2019