New insights into the events on the Indian stock market in the mid-1990s

Liquidity matters

One of the most important features of a financial market is liquidity. In a well functioning market, a trader faces low costs of transacting and can confidently expect that at future dates, across many states of nature, the cost of transacting will prove to be low.

The immediate impact of a low . . . → Read More: New insights into the events on the Indian stock market in the mid-1990s