can someone explain wtf "X is good for price discovery" means because it seems that people throw this phrase around and have no idea (or, at least, I certainly don't)
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One way of thinking about the phrase "X is good for price discovery" is by thinking about whether X conveys new information to the market. genuinely new information has permanent price impact, whereas other effects (such as e.g. rebalancing trades) only have temporary impact
Hasbrouck's 1991 papers "Measuring the Information Content of Stock Trades" and "The Summary Informativeness of Stock Trades: An Econometric Analysis" are the sources I have referred to on this subject specifically
