The Effect of SEC-Ordered Suspensions on Returns, Volatility, and Trading Volume

Stephen P Ferris, Raman Kumar and Glenn A Wolfe

The Financial Review, 1992, vol. 27, issue 1, 1-34

Abstract: This study evaluates the effect of SEC-ordered suspensions on securities' returns, volatility, and trading volume during 1963-87. It is found that there is a permanent devaluation of these securities during the suspension. This result, however, is sensitive to the announced reason for the suspension. Both the variance and the trading volume are found to be substantially higher than normal in the pre-suspension period. This trend continues in the immediate post-suspension period. The variance and volume levels return to more normal levels only at a much later date. The authors conclude that trading suspensions are not associated with the immediate elimination of unusual market activity. Copyright 1992 by MIT Press.

Date: 1992
References: Add references at CitEc
Citations: View citations in EconPapers (6)

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:finrev:v:27:y:1992:i:1:p:1-34

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0732-8516

Access Statistics for this article

The Financial Review is currently edited by Cynthia J. Campbell and Arnold R. Cowan

More articles in The Financial Review from Eastern Finance Association Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().