PTP #10

From John Cochrane, among others

Why is there this immense volume of trading? When was the last time you bought or sold a stock? You don’t do it every 20 milliseconds, do you?

If I get my list of the 10 great unsolved puzzles that I hope our grandchildren will have figured out, why does getting the information into asset prices require that the stock be turned over a hundred times?

Source: John H. Cochrane, interview by Tyler Cowen, “John Cochrane on Economic Puzzles and Habits of Mind,” Conversations with Tyler, ep. 117, March 10, 2021, https://conversationswithtyler.com/episodes/john-cochrane/

Topics: financial-markets , asset-pricing