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Full-Text Articles in Business
Price Discovery And Liquidity In Basket Securities, Thomas Henker, Martin Martens
Price Discovery And Liquidity In Basket Securities, Thomas Henker, Martin Martens
Thomas Henker
Basket securities enable investors to purchase a broad portfolio of securities in a single transaction. We examine the link between HOLDRS, a basket security comprising stocks from an industry or sector, and the underlying stocks. We find that the price of the portfolio of underlying securities leads and is more informative than the basket price. Our results are contrary to the findings of empirical studies that use futures, which are basket securities with features less like those of the underlying equities. Our findings suggest uninformed investors can minimize adverse selection costs by trading basket securities rather than the underlying stocks.
A Face Can Launch A Thousand Shares (And A 0.80% Abnormal Return), Matteo Arena, John Howe
A Face Can Launch A Thousand Shares (And A 0.80% Abnormal Return), Matteo Arena, John Howe
Matteo P. Arena
In this paper we examine the market reaction—price and volume—to the appearance of a firm in the Who’s News column of The Wall Street Journal. We differentiate between those firms whose articles are accompanied by a picture of an executive and a control set of firms whose articles on the same day are not accompanied by a picture. The results show a more pronounced market reaction to the “cum picture” articles, consistent with the incomplete information theory of Merton [1987] and the heuristic-based familiarity hypothesis. There is no evidence of significant long-run abnormal performance for the sample firms.
Islamic Banking And Finance: Moral Beliefs And Business Practices At Work, Karen Hunt Ahmed
Islamic Banking And Finance: Moral Beliefs And Business Practices At Work, Karen Hunt Ahmed
Karen Hunt Ahmed
The religion of Islam has existed for 1400 years but Islamic economic theory and its financial institutions emerged as an industry only in the 1970s. Islamic financial institutions (IFIs) are designed to help Muslims conduct business internationally while simultaneously upholding traditional Islamic values related to trade finance and currency movement. The basis for their existence is the Islamic moral prohibition on charging interest—interest is a central component of capitalist banking—yet IFIs conduct billions of dollars of business annually in the world economy and the de facto Islamic banking transaction is—in most cases—virtually identical to a capitalist banking transaction. Business practices …
Asian Financial Markets, Karim Pakravan