Using trade-level data from the Taiwan Stock Exchange, we document an asymmetric pattern of liquidity provision by individual investors who serve as de facto market makers. Specifically, individual investors, on average, provide more liquidity during market downturns. We further investigate the...

Using the expansion of price limit regulation as a quasi-natural experiment, this study examines the effect of retail investors' trading activities on stock market quality. Our results show a reduction in retail investors’ trading after the expansion of the daily price limit. Furthermore, this...