We study the trading dynamics associated with a sample of non-underwritten rights offerings by issuers that are effectively precluded from using an underwriter when issuing seasoned equity. Market microstructure evidence is consistent with shareholders and brokers actively intermediating these...

The U. S. Securities and Exchange Commission is committed to having exchanges fully implement decimal pricing by April 9, 2001, and is also considering revising the Uptick Rule. We consider the likely impact of the pending smaller tick size associated with decimalization on the efficacy of this...

We study nonunderwritten rights offerings without subscription pre-commitments from large shareholders. The results indicate firms incur substantial indirect costs in the form of price concessions for raising equity capital this way. The data therefore support the selling cost explanation of the...

We examine the impact of Rule 10a-1, the Uptick Rule, on short-sell orders sent to the NYSE. The principal finding is that the execution quality of short-sell orders is adversely affected by the Uptick Rule, even when stocks are trading in advancing markets. This is inconsistent with one of the...

Regulation SHO is designed to allow for tests of how the uptick rule effects trading, as it temporarily suspends the rule for a pilot sample of NYSE-listed stocks. Relative to a matched control sample, pilot stocks have similar rates of return, short trading volume, price volatility, and...