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The purpose of this study is to identify the key aspects that have been studied in the area of stock market liquidity, accumulate their important findings, and also provide a quantitative categorization of reviewed literature that will facilitate in conducting further research.
Market liquidity is critical to effective market functioning. Liquidity in financial markets facilitates the efficient allocation of economic resources through the productive allocation of capital and risk, the accurate generation and dissemination of issuer-specific information, and the effectiveness of monetary policy and financial stability.
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• What is market liquidity? We care about market liquidity because it • Why do we care about it? • Has it actually declined? • What do the recent bouts of market volatility mean?
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Jan 9, 2021 · The purpose of this study is to identify the key aspects that have been studied in the area of stock market liquidity, accumulate their important findings, and also provide a quantitative...
We organize both literatures around three basic questions: (a) how to measure illiquidity, (b) how illiquidity relates to underlying market imperfections and other asset characteristics, and (c) how illiquidity affects expected asset returns.
- Dimitri Vayanos, Jiang Wang
- 2012
Sep 1, 2015 · Liquidity is said to be the lifeblood of stock markets. It has prominent implications for traders, regulators, stock exchanges and the listed firms. In recent years a huge amount of...
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Overview and recommendations. Market liquidity refers to the ability of buyers and sellers of securities to transact efficiently and is measured by the speed with which large purchases...
