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 ().