Market liquidity of Japanese stocks analyzed, revealing impact on trading dynamics.
The article analyzes how easy it is to buy and sell Japanese stocks. The researchers looked at data from the Tokyo Stock Exchange to study three aspects of market liquidity: how close the buying and selling prices are, how trades affect prices, and how quickly prices bounce back after trades. They found that bid-ask spreads were narrow, market impact was low, and market resiliency was high, indicating good liquidity in the Japanese stock market.