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Bid-ask spread is an important determinant of the market liquidity risk. Hence, it is most likely that the higher the issue size is, the more
Bid-ask spread is an important determinant of the market liquidity risk. Hence, it is most likely that the higher the issue size is, the more liquidity the issue has, all else equal.
Group of answer choices
A. True.
B. False.
C. Neither true or false as it depends on the type of dealers the investors are trading with.
D. Neither true or false as it depends on how close the relationships between the investors and the dealers are.
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