This study investigates the effect of seasoned equity offerings (SEOs) on the NASDAQ. The results confirm that, most of the time, news of a seasoned equity offering is associated with negative stock returns. This is consistent with earlier research that interpreted this effect as indicating the...

In this paper, we study stock market skewness/coskewness for seven Latin American emerging markets including Argentina, Brazil, Chile, Mexico, Colombia, Peru and Venezuela. Unlike the US, skewness in these countries is normally positive and driven by fundamentals. We find, however, that the...

Our objective is to understand the trading strategy that would allow an investor to take advantage of quot;excessivequot; stock price volatility and quot;sentimentquot; fluctuations. We construct a general equilibrium model of sentiment. In it, there are two classes of agents and stock prices...