2006-06-28 12:03:52 · 5 answers · asked by Oi Lin 2 in Business & Finance ➔ Investing
Yes. Buying and selling stocks is what causes the market to move. So if less stocks were sold (a lot less) the market would be less volatile.
2006-06-28 12:09:43 · answer #1 · answered by Honest and fair 3 · 0⤊ 0⤋
It is hard to say.
It would become less volatile if money is now coming in and out of the market, but probably less voIotile if money is now shifting between assets within the market because the market would become less liquid.
Stocks where most of the shares never trade are much more volatile than those with more depth.
2006-06-28 19:10:37 · answer #2 · answered by Ranto 7 · 0⤊ 0⤋
For a market to be active, there ought to be selling and buying activities on a regular basis. If not, the public faith in the market will be lost and it will diminish investment. It will eventually lead to a disastrous chain-reaction in the economy as a whole.
2006-07-11 10:58:29 · answer #3 · answered by Sami V 7 · 0⤊ 0⤋
No..it probably would be more volatile since you are restricting demand.
2006-07-08 18:57:18 · answer #4 · answered by Anonymous · 0⤊ 0⤋
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2006-07-11 23:52:40 · answer #5 · answered by thewordofgodisjesus 5 · 0⤊ 0⤋