3min chapter

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#5 - Alex Gordon-Brown on how to donate millions in your 20s working in quantitative trading

80,000 Hours Podcast

CHAPTER

Is Liquidity Really Important?

When the market produces a price because lots of people have been doing research and buying and selling it, then that's useful for other people. So do we really need more people working in finance providing this liquidity? And the difference between the buying pricing and the selling price is often very small, less than 0.1%. How important actually is liquidity on the margin? I think there's definitely some fairness to that. The most obvious cases where having a functioning stock market seems valuable isn't really for the companies in the S&P 500,. It's for companies that are relatively less mature.

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