Securities Transaction Taxes and Financial Markets /

This paper argues that securities transaction taxes "throw sand" not in the wheels, but into the engine of financial markets where the transformation of latent demands into realized transactions takes place. The paper considers the impact of transaction taxes on financial markets in the co...

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Автор: Habermeier, Karl
Інші автори: Kirilenko, Andrei
Формат: Журнал
Мова:English
Опубліковано: Washington, D.C. : International Monetary Fund, 2001.
Серія:IMF Working Papers; Working Paper ; No. 2001/051
Онлайн доступ:Full text available on IMF
Опис
Резюме:This paper argues that securities transaction taxes "throw sand" not in the wheels, but into the engine of financial markets where the transformation of latent demands into realized transactions takes place. The paper considers the impact of transaction taxes on financial markets in the context of four questions. How important is trading? What causes price volatility? How are prices formed? How valuable is the volume of transactions? The paper concludes that transaction taxes or such equivalents as capital controls can have negative effects on price discovery, volatility, and liquidity and lead to a reduction in the informational efficiency of markets.
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Фізичний опис:1 online resource (30 pages)
Формат:Mode of access: Internet
ISSN:1018-5941
Доступ:Electronic access restricted to authorized BRAC University faculty, staff and students