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> Liquidity and price discovery are useful things. Nobody would pay them otherwise. Is there any other evidence of their usefulness beyond "people pay for it"?
by bheadmaster 4y ago
> Liquidity and price discovery are useful things. Nobody would pay them otherwise.
Is there any other evidence of their usefulness beyond "people pay for it"?
- sokoloff 4y agoOn the liquidity side, would you pay more for a security that you could easily and quickly sell with small slippage than you would for a security that could not be easily sold or only sold with a large slippage? "People pay for [that]" because it's a genuinely useful property of an investment vehicle.