Rocked by a flurry of high-profile sex discrimination lawsuits in the 1990s, Wall Street was supposed to have cleaned up its act. It hasn't. Selling Women Short is a powerful new indictment of how ...America's financial capital has swept enduring discriminatory practices under the rug.
Few single events have affected business and society in the US so profoundly, and in such a short time. There have also been few books that address both these elements of the crash together, and very ...little published on the subject in the past decade. In this book, a gifted narrative historian with extensive background in the history of business and finance will put into perspective the many conflicting theories of what caused the crash, what role speculation did or did not play, whether or not it could have been avoided, and what role it played in bringing on the depression. The crash itself will be the climax of the narrative. Most of the book will concentrate on the decade before the crash, outlining the heavy bull market, and describing an era of unprecedented technological development, optimism, and expanding wealth. This decade saw the burgeoning of mass society and a popular culture driven by media and advertising, and a heady free market marked by unregulated banking and credit systems, and get-rich-quick schemes. Klein argues that the stock market crash marked a turning point in American history where the failure of self-regulating individualism led to an overhaul of the financial system and much more government regulation. It threw into question the beliefs in the American dream spawned by the 20s and preceded a preiod of deep depression, not only economically, but in regard to the most fundamental American values. The narrative will use a variety of people, developments, and events to illuminate these themes: Jack Morgan, Richard Whitney, Joseph Kennedy, Charles Mitchell, Herbert Hoover, John J. Raskob, and Alexander J. Noyes.
The securities settlement literature indicates that centralized settlement can reduce monitoring incentives and lead to excessive risk-taking and inefficient risk-sharing. This paper examines ...broker-failure rates and counterparty losses surrounding the transition from bilateral to multilateral settlement facilitated by the NYSE. Study results provide evidence that net settlement reduced failures without diminishing risk constraining incentives. The study constructs a controlled comparison of broker failures through data collected from the NYSE and the Consolidated Stock Exchange, which traded identical securities settled under different systems. The results suggest that multilateral settlement is advantageous when financial markets are highly stressed.
This article uses transactions data for all NYSE/AMEX stocks in the period 1983-2002 to study how investors trade in Jegadeesh and Titman's (1993) momentum portfolios. Among small trades, there is an ...extremely sluggish reaction to the past returns. For instance, an initial small-trade buying pressure exists for loser stocks, and it gradually converts into an intense selling pressure over the following year. The results are consistent with initial underreaction followed by delayed reaction among small traders. Moreover, small-trade imbalances during the formation period significantly affect momentum returns, suggesting that underreaction among small traders contributes to the momentum effect. Large traders, by contrast, show no evidence of underreaction, and large-trade imbalances have little impact on subsequent returns. Overall, the results suggest that momentum could partly be driven by the behavior of small traders.
I analyze market-order execution quality using order-based data reported in accordance with Securities and Exchange Commission Rule 11Ac1-5. These data facilitate a comprehensive investigation of ...multiple dimensions of execution quality, including measures of costs and speed, for large samples of common stocks on Nasdaq and the NYSE. The evidence is consistent with competitive equity markets. Overall execution costs on Nasdaq exceed those on the NYSE, but orders execute faster. This relationship reverses for larger orders exceeding 1,999 shares. The apparent trade-off between costs and speed suggests that inferring execution quality from costs alone could be problematical. It also illustrates the need for models of trader behavior that can accommodate multiple dimensions of execution quality.
Rain or Shine: Where is the Weather Effect? Goetzmann, William N.; Zhu, Ning
European financial management : the journal of the European Financial Management Association,
November 2005, Letnik:
11, Številka:
5
Journal Article
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There is considerable empirical evidence that emotion influences decision‐making. In this paper, we use a database of individual investor accounts to examine the weather effects on traders. Our ...analysis of the trading activity in five major US cities over a six‐year period finds virtually no difference in individuals’ propensity to buy or sell equities on cloudy days as opposed to sunny days. If the association between cloud cover and stock returns documented for New York and other world cities is indeed caused by investor mood swings, our findings suggest that researchers should focus on the attitudes of market‐makers, news providers or other agents physically located in the city hosting the exchange. NYSE spreads widen on cloudy days. When we control for this, the weather effect becomes smaller and insignificant. We interpret this as evidence that the behaviour of market‐makers, rather than individual investors, may be responsible for the relation between returns and weather.
An individual investor calls his broker and requests $100,000 of a certain stock for his portfolio. The broker sees that shares of that stock are currently being offered at $10 a share, and that ...there are 4,000 shares available on the New York Stock Exchange (NYSE), 3,000 on NASDAQ, and 3,000 on the BATS Global Exchange, for a total of 10,000 shares. Satisfied with his ability to fulfill his client's request, the broker hits "submit"- only to find that these offerings have disappeared and that the cheapest offering price of the stock is now above $10 a share, resulting in a purchase of fewer than the expected 10,000 shares for his client.
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