I don’t want anything in particular, just speaking to the earlier post (speaking on a Bernie Sanders proposal, I think). The “thesis” is that by putting a smal

I don’t want anything in particular, just speaking to the earlier post (speaking on a Bernie Sanders proposal, I think). The “thesis” is that by putting a small tax on transactions, you will decrease the profitability of trading strategies that involve trading securities many times therefore discouraging them. Liquidity is a trickier concept. I’m not sure if it has a consistent measurement definition. If you define liquidity as turnover or something close, then lowering trading frequency lowers liquidity by definition. How that affects liquidity in the practical sense for a “regular” investor is an uncertainty. It’s hard for me to imagine that a trader that holds stock for an average of 1 year will have more trouble getting in or out of Google stock, but maybe I’m wrong.