Corporate Finance: The Core (4th Edition) (Berk, DeMarzo & Harford, The Corporate Finance Series)
4th Edition
ISBN: 9780134202648
Author: Jonathan Berk, Peter DeMarzo
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Question
Chapter 1.3, Problem 3CC
Summary Introduction
To Determine: The reasons for limit orders to be termed as providers of liquidity.
Introduction: Limit order book is a documentation of unexecuted limit orders that are maintained by specialists. These requests are dealt with similar different orders regarding the need for execution.
The gathering of all limit orders is termed as limit order book. Trades influence their limit order books open with the goal that the brokers or the investors can expect the best bid price and ask for prices when choosing where to exchange.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
Explain how suppliers and creditors use a customer’s payment practices to judge liquidity.
What actions have you had to take in your own life to overcome liquidity problems?
What is the importance of liquidity?
Chapter 1 Solutions
Corporate Finance: The Core (4th Edition) (Berk, DeMarzo & Harford, The Corporate Finance Series)
Ch. 1.1 - Prob. 1CCCh. 1.1 - Prob. 2CCCh. 1.2 - Prob. 1CCCh. 1.2 - Prob. 2CCCh. 1.3 - What are the important changes that have occurred...Ch. 1.3 - What is the limit order book?Ch. 1.3 - Prob. 3CCCh. 1 - Prob. 1PCh. 1 - What does the phrase limited liability mean in a...Ch. 1 - Prob. 3P
Ch. 1 - Prob. 4PCh. 1 - Prob. 5PCh. 1 - You are a shareholder in a C corporation. The...Ch. 1 - Prob. 7PCh. 1 - Prob. 8PCh. 1 - Prob. 9PCh. 1 - Prob. 10PCh. 1 - Prob. 11PCh. 1 - Prob. 12PCh. 1 - Prob. 13PCh. 1 - Prob. 14PCh. 1 - Describe the important changes that have occurred...Ch. 1 - Prob. 16PCh. 1 - Explain how the bid-ask spread is determined in...Ch. 1 - Prob. 18PCh. 1 - Suppose the following orders are received by an...
Knowledge Booster
Similar questions
- Distinguish Liquidity from Solvency by providing concrete examples. Liquidity Example: Solvency Example:arrow_forwardWhich of the following have high return and low Liquidity? a. demand deposit account b. saving account c. NOW account d. Checking accountarrow_forwardWhat is a limitation common to both the current and quick ratio? * Debtors may not pay on time. Inventories may not be truly liquid. Accounts receivable may not be truly liquid. Prepaid expenses are potential sources of cash. Marketable securities are not liquid.arrow_forward
arrow_back_ios
arrow_forward_ios
Recommended textbooks for you
- Intermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage Learning
- EBK CONTEMPORARY FINANCIAL MANAGEMENTFinanceISBN:9781337514835Author:MOYERPublisher:CENGAGE LEARNING - CONSIGNMENT
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:Cengage Learning
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:9781337514835
Author:MOYER
Publisher:CENGAGE LEARNING - CONSIGNMENT