Can I read Impact of Information on Inactive Stocks on EtoBox?
Impact of Information on Inactive Stocks by Judy Moody is a document available to read on EtoBox.
What is Impact of Information on Inactive Stocks about?
1) The paper examines how liquidity and information affect the bid-ask spreads of infrequently traded stocks. 2) It introduces a new technique, probability of informed trading (PIN), to estimate the proportion of informed and uninformed trades. 3) The empirical results show PIN is significantly higher for less actively traded stocks and is the most important factor in explaining the larger spreads of inactive stocks. Reducing information asymmetry through greater transparency could help minimize spreads.
- Author
- Judy Moody
- Language
- EN