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EXCHANGE LISTING AND STOCK LIQUIDITY
Author(s) -
Dubofsky David A.,
Groth John C.
Publication year - 1984
Publication title -
journal of financial research
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.319
H-Index - 49
eISSN - 1475-6803
pISSN - 0270-2592
DOI - 10.1111/j.1475-6803.1984.tb00381.x
Subject(s) - market liquidity , listing (finance) , stock exchange , business , market maker , monetary economics , financial system , stock market , economics , finance , geography , context (archaeology) , archaeology
Two measures are used to estimate the liquidity of stocks that switch their places of trading (from OTC to NYSE, from OTC to AMEX, and from AMEX to NYSE). Using an event‐type methodology, results are obtained that indicate a decline in liquidity for stocks leaving the OTC market. Stocks switching from the AMEX to the NYSE experience an initial increase in liquidity, followed by a decline almost to previous levels.