Who makes markets
نویسنده
چکیده
A dealer needs access to order flow and information to make a market profitably in a Nasdaq stock. Several variables that proxy for the stocks that an individual market maker’s brokerage customers trade, including volume, location, underwriting participation and analyst coverage, are significant determinants of market making activity. Informational advantages may also factor in the market making decision as evidenced by dealers specializing in industries. These findings suggest that individual dealers have competitive advantages in making markets in specific stocks, and that potential market making competition comes from the dealers who share those advantages rather than all Nasdaq market makers. r 2002 Elsevier Science B.V. All rights reserved. JEL classification: G24; D43; G14
منابع مشابه
A Decentralized Online Sortition Protocol
We propose a new online sortition protocol which is decentralized. We argue that our protocol has safety, fairness, randomness, non-reputation and openness properties. Sortition is a process that makes random decision and it is used in competitions and lotteries to determine who is the winner. In the real world, sortition is simply done using a lottery machine and all the participa...
متن کاملNobody Sells Gold for the Price of Silver: Dishonesty, Uncertainty and the Underground Economy
Much attention has been devoted recently to the underground economy, and in particular to the IRC markets for stolen identities, phishing kits, botnets, and cybercrime related services. It is suggested that sophisticated underground markets show great specialization and maturity. There are complex divisions of labor and service offerings for every need. Stolen credentials are traded in bulk for...
متن کاملMinimum Payments, Incentives, and Markets∗
We consider the effect of an increase in the minimum feasible payment (driven by a minimum wage, limited liability, social norms or a legal restriction that pay cannot be negative) in markets with performance pay. We build a model in which a principal can adjust both the incentives of agents and the number of agents it employs. While a principal with a fixed number of agents will typically redu...
متن کاملIdentification and analysis of housing submarkets in Tehran City
Housing Submarkets are a set of dwellings that have similar characteristics. They are reasonably close substitutes for one another, yet relatively poor substitutes for dwelling in other submarkets. Identifying housing sub-markets makes it possible to predict housing prices more accurately. Moreover, it helps planners and policy-makers to make better decisions. Despite the importance of this iss...
متن کاملConsolidated Review of Follow the Green: Growth and Dynamics in Twitter Follower Markets
2. Weaknesses Evaluation with respect to twitter current behaviour is lacking. The paper built on several previous work of the same group of authors. This makes the technical novelty of this paper weak. Paper makes several assumptions (details below) that would benefit from validation. I have no idea how authors control the quality of accounts for the fair comparisons across markets. Authors (i...
متن کامل