Title: Relationship between stock liquidity and stock price changes rate
Abstract: The relationship between stock liquidity and price change was researched in this paper by using data collected from Tehran Stock Exchange July to September 2010. Since this ratio could make a separation between the trading behaviors, it is important for the stock market authority to consider in assessing the market. Hypotheses were examined through correlation test about daily and monthly data. A correlation coefficient measures the strength and direction of a linear association between two variables. It ranges from -1 to +1. The results showed a significant relation between daily liquidity and price changes of stocks. In addition, significant relation was found between monthly liquidity and price changes of stocks. T student test showed positive but low correlation between liquidity and price change rates.
Key words: Stock liquidity, stock price changes, average value of ask/bid, average inter arrival rate.
Publication Year: 2012
Publication Date: 2012-09-19
Language: en
Type: article
Indexed In: ['crossref']
Access and Citation
Cited By Count: 1
AI Researcher Chatbot
Get quick answers to your questions about the article from our AI researcher chatbot