Capital market trading volume: an overview and some preliminary conclusions

Article


Grahl, J. and Photis Lysandrou, P. 2006. Capital market trading volume: an overview and some preliminary conclusions. Cambridge Journal of Economics. 30 (6), pp. 955-979. https://doi.org/10.1093/cje/bel014
TypeArticle
TitleCapital market trading volume: an overview and some preliminary conclusions
AuthorsGrahl, J. and Photis Lysandrou, P.
Abstract

This paper suggests an explanation for the heavy trading volume observed on the US capital markets, the world's largest. Heterodox economic theory puts much of this volume down to speculation. Mainstream theory tends to support this thesis, either directly or indirectly, by giving space to the idea that trading activity is for the most part exogenous to the functioning of the capital markets. The central hypothesis of this paper is that the trading volumes observed are an endogenous feature of the capital markets, because they are to a great extent determined by the needs of the institutional investors who predominate on these markets. This endogeneity of trading is posited in connection with the emergence of a new ‘core–satellite’ paradigm in institutional investment, a development that essentially manifests the asset-management industry's transformation from a small industry serving a few wealthy clients to a mass industry serving large sections of the population.

JournalCambridge Journal of Economics
ISSN1464-3545
Publication dates
Print01 Nov 2006
Publication process dates
Deposited27 Nov 2008
Output statusPublished
Digital Object Identifier (DOI)https://doi.org/10.1093/cje/bel014
LanguageEnglish
Permalink -

https://repository.mdx.ac.uk/item/80yvy

  • 24
    total views
  • 0
    total downloads
  • 0
    views this month
  • 0
    downloads this month

Export as