Charles Explorer logo
🇬🇧

How important is informed trading for the bid-ask spread? Evidence from an emerging market.

Publication at Faculty of Social Sciences, Faculty of Mathematics and Physics, Centre for Economic Research and Graduate Education |
2000

Abstract

The link between informed trading and the bid-ask spread has been the focus of abundant literature and some authors feared that a large amount of informed trading might lead to shutdown of markets. We explore this issues using data from the Czech Republic.