Stock exchange

About: Stock exchange is a research topic. Over the lifetime, 39566 publications have been published within this topic receiving 612044 citations.

The London Stock Exchange : a history

Abstract: Introduction From Market to Exchange, 1693-1801 From Money to Capital, 1801-51 From Domestic to International, 1850-1914 Shattered Dominance: The First World War, 1914-18 Challenges and Opportunities, 1919-39 The Changing Marketplace between Wars New Beginnings: The Second World War Recovery and Crisis, 1945-9 Drifting towards Oblivion, 1950-9 Failing to Adjust, 1960-9 Prelude to Change, 1970-9 Big Bang Black Hole Conclusion

Risk and Return on Real Estate: Evidence from Equity Reits

Abstract: We analyze monthly returns on an equally-weighted index of 18 to 23 equity (real property) real estate investment trusts (REITs) that were traded on major stock exchanges over the 1973-87 period. We employ a multifactor Arbitrage Pricing Model using prespecified macroeconomic factors. We also test whether equity REIT returns are related to changes in the discount on closed-end stock funds, which seems plausible given the closed-end nature of REITs. Three factors, and the percentage change in the discount on closed-end stock funds, consistently drive equity REIT returns: unexpected inflation and changes in the risk and term structures of interest rates. The impacts of these variables on equity REIT returns is around 60 percent of the impacts on corporate stock returns generally. As expected, the impacts are greater for more heavily levered REITs than for less levered REITs. Real estate, at least as measured by the return performance of equity REITs, is less risky than stocks generally, but does not offer a superior risk-adjusted return and is not a hedge against unexpected inflation.

Liquidity and Stock Returns

Abstract: (1986). Liquidity and Stock Returns. Financial Analysts Journal: Vol. 42, No. 3, pp. 43-48.

Financial Development and Economic Growth: The Role of the Stock Markets

Abstract: The relationship between financial markets and economic growth has interested economists for decades. However, previous studies do not identify the unique role of stock markets in economic growth, nor do they test explicitly if stock markets affect the level or the growth rate of the economy. Several theoretical and empirical papers by Levine (1991), Levine and Zervos (1995), Kunt (1992), and Kunt and Levine (1996) have contributed to our understanding of how stock market development may affect economic growth, but the common problem with them all is that no channel through which stock markets can stimulate economic growth is explicitly identified. This thesis deals with two issues concerning the relationship between stock markets and economic growth. The study examines the nature of the causal link between stock markets and economic growth using Toda and Yamamoto (1999) technique in testing for causality relationship between the variables concerned. Focusing on the nature of causality between stock markets and economic growth, the study examines the endogenous growth hypothesis that fmancial markets enhance economic growth performance specifically through the level and productivity of investment. In the empirical part of the study, we analyze stock market data from seven countries over 1979-1995. We use time-series analysis, and find that the development of stock markets has a significant effect on the growth rate of real GDP. We also find evidence that supports the endogenous growth hypothesis, where the level and productivity of investment are important channels through which stock markets enhance economic growth.

Limit Order Trading

Abstract: We analyze the rationale for limit order trading. Use of limit orders involves two risks: 1) an adverse information event can trigger an undesirable execution, and 2) favorable news can result in a desirable execution not being obtained. On the other hand, a paucity of limit orders can result in accentuated short-term price fluctuations that compensate a limit order trader. Our empirical tests suggest that trading via limit orders dominates trading via market orders for market participants with relatively well balanced portfolios, and that placing a network of buy and sell limit orders as a pure trading strategy is profitable. AN IMPORTANT DESIGN FEATURE of a securities market is whether it is quote driven (such as Nasdaq in the United States and SEAQ in London), order driven (such as the Tokyo Stock Exchange), or both (such as the New York Stock Exchange, which has a specialist system, a public limit order book, and floor traders). A market is quote driven if dealers announce the prices at which other market participants can trade; it is order driven if some investors, by placing limit orders, establish the prices at which other participants can buy or sell shares. Although limit orders are routinely submitted to markets such as the New York and Tokyo Stock Exchanges, their desirability for investors has received little attention in the literature until recently.' This article analyzes the rationale for, and profitability of, limit order trading. The issue is clearly important to market participants individually. It is also important from a market structure point of view: the profitability of limit order trading is essential to the viability of an order driven market. Moreover, an understanding of the order flow dynamics that make limit order trading viable enhances our knowledge of how a market's microstructure affects the return generation process.