Market tightness

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Template:Short description 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.Script error: No such module "Unsubst".

Equity markets

In equity markets, market tightness is measured using percentage relative spread.[3][2]

Housing markets

In housing markets, measures of market tightness include the probability of achieving a sale and house price appreciation. Tighter housing markets result in greater seller bargaining power and higher sale prices.[4]

Labour markets

Labour market tightness is measured as the ratio of job vacancies per unemployed person or jobseeker.[5]

References

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