What's special about the specialist?

Article Abstract:

A floor exchange mechanism was most beneficial when the possibility of utilizing private information was highest and when liquidity traders were most susceptible to transaction costs. Therefore, the creation of automatic stock exchange databases was counterproductive, although such exchanges operated in markets where private information had little effect on liquidity or hedging demand. High liquidity demand, low information markets were successfully served by a market system that allowed uninformed contributors to participate.

Influence, Market makers (Securities trading), Trading rooms (Finance)

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Price stabilization as a bonding mechanism in new equity issues

Article Abstract:

Price stabilization and penalty bids are complementary activities which serve to promote the efficiency in the primary equity markets. A commitment to price stabilization prevents the underwriter from overstating investor indications of interest prior to setting the offer price for a new issue. On the other hand, penalty bids provide underwriters with the freedom to eliminate inefficiency by exclusively extending the stabilization effort to interested investors.

Public Finance Activities, Administration of General Economic Programs, Tax Evasion & Penalties, Price Maintenance & Prodn Controls, Finance, Tax penalties, Price control, Price regulations

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The option to withdraw IPOs during the premarket: empirical analysis

Article Abstract:

Research is presented concerning the reduction of underpricing of American initial public offerings by the strengthening of the bargaining power of the issuers over the investors through the option to withdraw.

Capital Management-Stock Sales, Research, Prices and rates, Options (Finance), Economic policy, Securities prices, Business enterprises, Going public (Securities), Initial public offerings, Stock offerings

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