برچسب: Black Holes
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Persaud-Liquidity Black Holes
Black Holes What is liquidity and why does it matter? •Speed, ease and cost of transacting •Recordedspreads are a poor measure •Poor liquidity is associated with volatility Liquidity needs diversity •There is less diversity because –Information costs have fallen –Less diversity within and between firms –Switch to market-sensitive risk management systems Black Holes
برچسب: Black Holes
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Morris And Song Shin-Liquidity Black Holes
Traders with short horizons and privately known trading limits interact in a market for a risky asset. Risk-averse, long horizon traders supply a downward sloping residual demand curve that face the short-horizontraders. When the price falls close to the trading limits of the short horizon traders,selling of the risky asset by any trader increases the […]