The equity markets for smaller issues are characterized by close economic relationships between new issuers and the underwriters who bring the stock public. Underwriters sponsor new issues and often provide liquidity in the secondary market by acting as market makers. This paper analyzes...

This paper examines the process of price discovery at the New York Stock Exchange (NYSE) single price opening auction. Interest in this topic is motivated by the crucial role played by opening mechanisms in information aggregation following the overnight non-trading period. In addition, the...

Opening mechanisms play a crucial role in information aggregation following the overnight nontrading period. This article examines the process of price discovery at the New York Stock Exchange single-price opening auction. We develop a theoretical model to explain the determinants of the opening...

We examine 1,098 Nasdaq firms delisted in 1999-2002 that subsequently traded in the OTC Bulletin Board and/or the Pink Sheets. Market quality deteriorates significantly after delisting: share volume declines by two-thirds; quoted spreads almost triple from 12.1 to 33.9 percent; and effective...

We examine the impact of geographical proximity on the acquisition decisions of US public firms over the period 1990-2003. Transactions where the acquirer and target firms are located within 100km of each other are classified as local transactions. We find that acquirer returns in local...

Stocks may be delisted from Nasdaq for violating one of the market's maintained listing requirements. These include non-core requirements such as a minimum bid price; core requirements such as a minimum market capitalization; and governance requirements such as SEC disclosure. In addition, firms...

The New York Stock Exchange repealed its Rule 390 on May 8, 2000. The rule disallowed exchange members from trading stocks listed prior to April 26, 1979 outside of an exchange. We examine in this paper some of the implications of the rule's repeal. In particular, we examine changes in market...

Do traders who place orders early necessarily trade first? In some trading systems, the answer is no. Such systems often give preference to larger orders instead. Institutional arrangements such as quot;preferencingquot; and quot;payment-for-order flowquot; also violate time priority. In an...

The U.S. Chapter 11 bankruptcy system has long been viewed as equity friendly, with absolute priority deviations (APD) in favor of equity holders occurring as often as in 75% of the cases in the 1980s. By contrast, based on a more recent and much larger sample of bankruptcies from the period...