Abstract
All of economics concerns itself with prices and quantities. Why should asset markets be any different? The need for satisfactory models of volume and price changes in asset markets is self-evident. Let me start by taking a vastly oversimplified view of this issue. If I ask a layman why anybody might sell shares in a firm, I think the obvious answers are (1) the individual needs the money to buy something else, be it a house or a six-pack of beer, and (2) the individual thinks the price of the stock will fall. Conversely, a buyer either (1) has received income that he desires to invest, or (2) thinks the stock will go up.
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© 1989 Kluwer Academic Publishers
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Stone, C.C. (1989). Commentary by V. V. Chari. In: Stone, C.C. (eds) Financial Risk: Theory, Evidence and Implications. Springer, Dordrecht. https://doi.org/10.1007/978-94-009-2665-3_2
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DOI: https://doi.org/10.1007/978-94-009-2665-3_2
Publisher Name: Springer, Dordrecht
Print ISBN: 978-94-010-7701-9
Online ISBN: 978-94-009-2665-3
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