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Q.2. Consider some stocks that trade in two markets, with a trader being able to trade in these stocks in either market. Suppose that the
Q.2. Consider some stocks that trade in two markets, with a trader being able to trade in these stocks in either market. Suppose that the two markets are identical in all respects except that bidask spreads are lower and depths (the number of shares being offered at the bid and ask prices) are greater in one of the two markets. State in which market liquidity-motivated and information-motivated traders would prefer to transact. Justify
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