Today's market is also much more liquid, and if you go through history you know higher liquidity means higher prices.
The second, and more important, is high liquidity.
market, he said, demand high liquidity — and "in their judgment they only get high liquidity when the market capitalization is about $300 or $500 million".
Higher liquidity could find its way to expenditure, and also revert the credit crunch plaguing small and medium firms.
Because of this high liquidity, the yield rate on treasury bills is normally lower than on longer-term securities.
A large market share means high liquidity, which in turn means the NYSE can offer cheap trading.
Home-ownership rates can only be sustained by high liquidity, and the decades-long role of the government-guaranty organisations has persisted because fostering liquidity adds significant value.
In the current crisis, Professor Pedersen said in an e-mail message, "securities with high liquidity risk have done very poorly," just as we should have expected.
IN A country struggling with rampant corruption, a weak judiciary and unstable government, the Bulgarian banking system has consistently won praise for its stable institutions, high liquidity and low risk.
"Between 2009 and 2010, the average oil price jumped 30 percent, which represents a significant surplus to the oil proceeds and implied higher liquidity for public finances," said Philippe Dauba-Pantanacce, senior economist for the Middle East and North Africa region for Standard Chartered Bank, based in Dubai.
