Download the fantastic book titled Market Liquidity written by Thierry Foucault, available in its entirety in both PDF and EPUB formats for online reading. This page includes a concise summary, a preview of the book cover, and detailed information about "Market Liquidity", which was released on 18 June 2024. We suggest perusing the summary before initiating your download. This book is a top selection for enthusiasts of the Capital market genre.
Summary of Market Liquidity by Thierry Foucault PDF
"The process by which securities are traded is very different from the idealized picture of a frictionless and self-equilibrating market offered by the typical finance textbook. This book offers a more accurate and authoritative take on this process. The book starts from the assumption that not everyone is present at all times simultaneously on the market, and that participants have quite diverse information about the security's fundamentals. As a result, the order flow is a complex mix of information and noise, and a consensus price only emerges gradually over time as the trading process evolves and the participants interpret the actions of other traders. Thus, a security's actual transaction price may deviate from its fundamental value, as it would be assessed by a fully informed set of investors. The book takes these deviations seriously, and explains why and how they emerge in the trading process and are eventually eliminated. The authors draw on a vast body of theoretical insights and empirical findings on security price formation that have come to form a well-defined field within financial economics known as "market microstructure." Focusing on liquidity and price discovery, the book analyzes the tension between the two, pointing out that when price-relevant information reaches the market through trading pressure rather than through a public announcement, liquidity may suffer. It also confronts many striking phenomena in securities markets and uses the analytical tools and empirical methods of market microstructure to understand them. These include issues such as why liquidity changes over time and differs across securities, why large trades move prices up or down, and why these price changes are subsequently reversed, and why we observe temporary deviations from asset fair values"--
Detail About Market Liquidity PDF
- Author : Thierry Foucault
- Publisher : Oxford University Press
- Genre : Capital market
- Total Pages : 531 pages
- ISBN : 0197542069
- Release Date : 18 June 2024
- PDF File Size : 41,6 Mb
- Language : English
- Rating : 4/5 from 21 reviews
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