What Does Stock Ownership Breadth Measure?*

What Does Stock Ownership Breadth Measure?

Using holdings data on a representative sample of all Shanghai Stock Exchange investors, we show that increases in ownership breadth (the fraction of market participants who own a stock) predict low returns: highest change quintile stocks underperform lowest quintile stocks by 23% per year. Small retail investors drive this result. Retail ownership breadth increases appear to be correlated with...

Breadth of Ownership and Stock Returns

We develop a model of stock prices in which there are both differences of opinion among investors as well as short-sales constraints. The key insight that emerges is that breadth of ownership is a valuation indicator. When breadth is low i.e., when few investors have long positions in the stock this signals that the short-sales constraint is binding tightly, implying that prices are high relati...

Does Ownership Breadth Predict Stock Returns? New Evidence from Market- Wide Holdings Data

We test how ownership breadth predicts stock returns. Using holdings data on a representative Shanghai Stock Exchange investor sample from 1996 to 2007, we find that cross-sectionally, high breadth change quintile stocks underperform low breadth change quintile stocks by 22 percent per year, a result driven by retail investor ownership breadth. This is consistent with breadth increases primaril...

What does % V actually measure ?

The system of classifying languages by their rhythmic patterning traditionally and historically characterizes the patterns in terms of three groups. One group includes the so-called “stress-timed” languages like English, German, and Dutch, which are perceived as having equal intervals between stresses, and are described as sounding rhythmically like Morse code (James 1940). A second rhythmic cl...

What does cerebral oximetry measure?