Liquidity Risk, Speculative Trade, and the Optimal Latency of Financial Markets

Conference object, Preprint English OPEN
Fricke, Daniel; Gerig, Austin;
  • Publisher: ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften, Leibniz-Informationszentrum Wirtschaft Kiel und Hamburg
  • Subject: G11 | G10 | G14
    • jel: jel:G11 | jel:G10 | jel:G14
      ddc: ddc:330

Garbade and Silber (1979) demonstrate that an asset will be liquid if it has (1) low price volatility and (2) a large number of public investors who trade it. Although these results match nicely with common notions of liquidity, one key element is missing: liquidity als... View more
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