Hi every one … on page 322 they wrote:
some active investing approaches “demand liquidity” from the market . for example in a momentum strategy. the investor seeks to buy shares that are already rising in price (or sell those that are already falling). in contrast, some active investing approaches are more likely to “provide liquidity” to the market, such as deep value strategies involving stocks that are deemed to be significantly undervalued.
can anyone help me better understand these two terms: demand vs provide liquidity? which party of the trade is demanding or providing liquidity? and by liquidity do we mean cash or liquidity of the stocks?