Question

What do you think is likely to happen to the average price of a share if...

What do you think is likely to happen to the average price of a share if the NYSE decided to close every Friday and Monday to provide their workers longer weekends?

Homework Answers

Answer #1

Since trading will occur more in the remaining days the frequency of trade will increase more and initially the average price of share might fluctuate but in the long run the average price of share would stabilize. I feel average price will fall initially , since trading window is less most people will sell their stocks for fear of liquidity but in the long rain average prices would remain same.
The liquidity risk would increase though.

Please Discuss in case of Doubt

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