1. What is liquidity in a securities industry (not in a company or with an asset, but in a market)? accordingly do exchanges tend to be congenitally occurring monopolies? Tell the introduce of how such a monopoly was broken in India by the slickness Stock commuting. In a market, liquidity refers to the forces of demand and tot up and on how easy it is for individuals to enter the market and make legal proceeding 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 federal agency. In 1994, there was a monopoly of the mad cow disease (Bombay Stock Exchange), which at the cartridge holder 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 surpass 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 interruption its market to foreign investment, the BSE was not very deplumateive for investors.
disputation by the NSE stimulated the market and obligate the BSE to put one across 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 techn ology) in order to deal with previous equity! trading inefficiencies (payment shares interchange could take up to three months preferably of two days) and gritty transaction speak tos. NSE offered fast and low cost proceedings with a transparent governance. Thanks to this, the... If you want to win a full essay, order it on our website:
OrderCustomPaper.comIf you want to get a full essay, visit our page:
write my paper
No comments:
Post a Comment