Market tightness

Market tightness is a measure of the liquidity of a market.[1] High market tightness indicates relatively low liquidity and high transaction costs, whereas low market tightness indicates high liquidity and low transaction costs.[2] For example, during the dotcom bubble, information technology companies were very difficult and expensive to buy a part of, through stock, loan, or other methods, due to the tightness of competition in the market.[citation needed]

  1. ^ "market tightness". United Nations Economic and Social Commission for Western Asia. 17 July 2017. Retrieved 30 May 2021.
  2. ^ Olbrys, J.; Mursztyn, M. (2019). "Depth, tightness and resiliency as market liquidity dimensions: evidence from the Polish stock market". International Journal of Computational Economics and Econometrics. 9 (4): 308–326. doi:10.1504/IJCEE.2019.102513.