Corporate Finance: The Core (4th Edition) (Berk, DeMarzo & Harford, The Corporate Finance Series)
Corporate Finance: The Core (4th Edition) (Berk, DeMarzo & Harford, The Corporate Finance Series)
4th Edition
ISBN: 9780134202648
Author: Jonathan Berk, Peter DeMarzo
Publisher: PEARSON
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Chapter 1.3, Problem 3CC
Summary Introduction

To Determine: The reasons for limit orders to be termed as providers of liquidity.

Introduction: Limit order book is a documentation of unexecuted limit orders that are maintained by specialists. These requests are dealt with similar different orders regarding the need for execution.

The gathering of all limit orders is termed as limit order book. Trades influence their limit order books open with the goal that the brokers or the investors can expect the best bid price and ask for prices when choosing where to exchange.

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