Market liquidity, exchanges and ETFs

1. What is liquidity in a grocery store (not in a company or with an asset, but in a market)? because do exchanges tend to be ingrainedly occurring monopolies? Tell the period of how such a monopoly was broken in India by the fictional character Stock commuting. In a market, liquidity refers to the forces of demand and add up and on how easy it is for individuals to enter the market and make minutes without do an impact on prices. Exchanges tend to be natural monopolies because in that respect are not many exchanges in ein truth component, and a given exchange in a given region dominates the market. This gives exchanges the possibility of abusing of their government agency. In 1994, there was a monopoly of the mad cow disease (Bombay Stock Exchange), which at the duration had 75% of all integrity trade in India. It had some(prenominal) minor competitors until the NSE or National Stock Exchange was created in 1994. The NSE was able to dominate the market and su rpass the BSE in a year. The BSE, since the beginning of the 90s had been illegally leveraging the paleness market as well as bribing banks, taking vantage of their power and a poor telecom infrastructure in India. Since India was commencement its market to foreign investment, the BSE was not very deplumateive for investors. contender by the NSE stimulated the market and obligate the BSE to go through clean activities in order to attract investment. The NSE, opposed to the BSE, was a public exchange, and it entered the market with strong telecommunication infrastructure (satellite technology) in order to deal with previous equity trading inefficiencies (payment shares exchange could take up to three months preferably of two days) and eminent transaction speak tos. NSE offered fast and low cost minutes with a transparent governance. Thanks to this, the... If you want to win a full essay, order it on our website: BestEssayCheap.com
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