Pairs-trading is a short-term, self-financing arbitrage strategy in which buy and sell positions are simultaneously placed on two stocks whose prices have moved temporarily apart after following a long parallel path. We develop a new pairs trading rule based on financial analysts' buy hold sell...

Option introduction is associated with increased analyst coverage and a generally enhanced information environment for the underlying stocks. We hypothesize that these effects are more significant for Nasdaq than NYSE/Amex stocks because the Nasdaq stocks that are optioned tend to be smaller,...

We assess several aspects of analysts' forecasting performance for stocks included in Business Week's annual list of 100 “hot-growth” companies. We find that analysts underestimate earnings on average before stocks are included in the list, and that they tend to overestimate them afterward....

Pairs-trading is a short-term, self-financing arbitrage strategy in which buy and sell positions are simultaneously placed on two stocks whose prices have moved temporarily apart after following a long parallel path.We develop a newpairs-trading rule based on financial analysts' buy/hold/sell...