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Investment fund contribute to market liquidity by actively buying and selling securities which is essential for the smooth functioning of financial markets. It impacts the
Investment fund contribute to market liquidity by actively buying and selling securities which is essential for the smooth functioning of financial markets. It impacts the prices of the securities and can influence market sentiment as well. Investment funds provide a channel for capital formation. According to the article investment funds buying uranium would affect the nuclear energy market in various ways: Price: Investment funds can drive the price of uranium. The more funds we invested the more the demand for commodity rises. Quantity: Quantity could reduce the supply in the market. Reduction of supply could create scarcity and effecting the ability of power plants to meet their energy production. Market: Efficient market reflect all available information and investment fund activities. It could lead a dynamic changes in markets by fluctuating prices based on fundamental supplies. It might impact on long term plannings
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