Liquidity Effect in Economics. During a recession, the Federal Reserve, charged with regulating the nation's economy, adds money to the system to make credit more easily available. Easy credit ...

Mecklai graph of the day: Tightening noose around liquidity? The borrowings through the RBI repo window rose to a four-month high of Rs.1.016 trillion yesterday.

Increased liquidity helps to support the stock market. On November 15, the mid-quarter interest payment, which comes out of the "other reserves" account, will be significantly higher than in the past.

Across the small-size quartile, the low-liquidity group earns a geometric average return of 13.5 percent a year while the high-liquidity group 7.3 percent a year, a liquidity effect of 6.2 percent.

When liquidity is good, the difference between the price one would pay to buy or receive for selling a financial security is tiny, and even big trades do not affect prices much.

Mind you, the effect was most pronounced in the small-cap arena. For instance, value funds that held the least liquid 20 per cent of stocks outperformed value funds with the most liquid stocks by ...

iStock / JuSun As new liquidity requirements for high-interest savings account ETFs take effect, a combination of lower rates offered from deposit-taking banks and changes to what the ETFs hold are ...

This paper demonstrates a positive effect of stock liquidity on blockholder governance. Liquidity increases the likelihood of block formation. Conditional upon acquiring a stake, liquidity reduces the ...