Abstract
The aim of this study is to select the assets portfolio of common stocks in accordance with the high liquidity in the market, We assume that the selection of high liquidity stocks allows best trade-off between the return and risk and increases the efficiency of the portfolio. By using a sample of (35) listed companies of Iraqi stock exchange (Ise) for the period from 2007 to 2012. The study concluded that share's liquidity has significant effect on the characteristics of portfolio, therefore, The investor can get efficient portfolio if he chooses his portfolio composition from high liquidity stocks have been measured by using Bid-ask spread manner.
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