Ownership Structure and Stock Liquidity – Evidence from Indian Market

Sharma, Lakshmi (2005) Ownership Structure and Stock Liquidity – Evidence from Indian Market. TAPMI, Manipal.

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Abstract

Liquidity is an important feature of any financial market. Liquidity is the lubricating agent that facilitates a frictionless smooth functioning of the financial markets. Liquidity is an essential part of a stock market as much as the efficiency is. While efficiency refers to the speed with which the prices in the market move to reflect the information flows, liquidity refers to the ease with which the buyers and sellers promptly transact with minimal impact on the price of a stock. Liquidity of an asset is very precisely defined by Keynes way back in 1930. Keynes (1930) writes that an asset is more liquid than another, ‘if it is more certainly realizable at short notice without loss.’ (p.67) Liquidity of an individual stock, therefore, is of two dimensions – the availability of a market for the stock and the cost of trading in it.

Item Type:	TAPMI Working Papers
Uncontrolled Keywords:	Ownership Structure; Stock Liquidity; Indian Market
Subjects:	Human Resource Management
Divisions:	Finance and Strategy
Depositing User:	Ms. Vanitha K
Date Deposited:	17 Nov 2018 03:55
Last Modified:	21 Nov 2018 04:28
URI:	http://tapmi.informaticsglobal.com/id/eprint/354

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