EconPapers    
Economics at your fingertips  
 

What Makes When‐Issued Trading Attractive to Financial Markets?

Raymond M. Brooks, Yong H. Kim and J. Jimmy Yang

Financial Markets, Institutions & Instruments, 2014, vol. 23, issue 5, 245-271

Abstract: When‐issued trading is the trading of securities prior to the actual issue of the security. When‐issued trading is active around the world and in a variety of equity and bond markets. In this survey, we provide a general description of when‐issued trading, analyze benefits and costs in various financial markets, present existing theoretical models and predictions, and synthesize empirical findings. We find that when‐issued trading promotes price discovery, mitigates information asymmetry, provides convenience for trading ahead of the actual issue of the security, and in some markets reduces volatility. In addition, we offer policy implications and suggest directions for further research in this area.

Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1111/fmii.12020

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:wly:finmar:v:23:y:2014:i:5:p:245-271

Access Statistics for this article

More articles in Financial Markets, Institutions & Instruments from John Wiley & Sons
Bibliographic data for series maintained by Wiley Content Delivery ().

 
Page updated 2025-03-20
Handle: RePEc:wly:finmar:v:23:y:2014:i:5:p:245-271