> not to buy and sell shares a million times a second, or to buy and sell speculations at the same rate
What this does is provide liquidity, meaning one can buy and sell at any moment. Contrast this with investing in houses. It's not liquid at all - even in a smooth transaction, it can take a month to close. Houses can sit on the market for months or even years looking for a buyer.
The higher the liquidity, also means the more accurate the valuations.
What this does is provide liquidity, meaning one can buy and sell at any moment. Contrast this with investing in houses. It's not liquid at all - even in a smooth transaction, it can take a month to close. Houses can sit on the market for months or even years looking for a buyer.
The higher the liquidity, also means the more accurate the valuations.