Open AccessMarketing and financial issues in Iran
Author(s) -
Jila Bahrami
Publication year - 2020
Publication title -
journal of management and accounting studies
Language(s) - English
Resource type - Journals
ISSN - 2693-8448
DOI - 10.24200/jmas.vol6iss01pp43-51
Subject(s) - speculation , blame , volatility (finance) , market liquidity , business , financial market , economics , financial economics , monetary economics , finance , psychology , psychiatry
Objective: When a financial crisis occurs, speculators typically get the blame whereas fundamentalists are presented as the safeguard against excessive volatility. Methodology: This paper consider two types: speculators and fundamentals who have the same information. Results: In this paper, excess volatility not only exists, but is actually fueled by fundamental trading. Conclusion: Consequently, efficient markets are more volatile with a few speculators than with many speculators and Existence of fundamentals ruins market’s liquidity and this may pose problems for traders, who intend to undertake frequent transactions.