The making of a dealer market: From entry to equilibrium in the trading of Nasdaq stocks

Journal of Finance

Volumn 57, Issue 5, 2002, Pages 2289-2316

  Ellis, Katrina ^a   Michaely, Roni ^b   O’Hara, Maureen ^b  

^a UNIVERSITY OF CALIFORNIA   (United States)

^b Department of Molecular Biology and Genetics   (United States)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 0043095578     PISSN: 00221082     EISSN: None     Source Type: Journal    
DOI: 10.1111/1540-6261.00496     Document Type: Article

References (21)

1. Aggarwal, Reena, 2000, Stabilization activities by underwriters after new offerings, Journal of Finance 55, 1075-1104.
2. Aggarwal, Reena, and Pat Conroy, 2000, Price discovery in initial price offerings and the role of the lead underwriter, Journal of Finance 55, 2903-2922.
3. Battalio, Robert, Robert Jennings, and J. Selway, 1998, Payment for order flow, trading costs, and dealer revenue for market orders at knight securities, Working paper, Georgia State University.
4. Christie, William, Jeffrey Harris, and Paul Schultz, 1994, Why did Nasdaq market makers stop avoiding odd-eighth quotes? Journal of Finance 49, 1841-1860.
5. Christie, William, and Paul Schultz, 1994, Why do Nasdaq market makers avoid odd-eighth quotes? Journal of Finance 49, 1813-1840.
6. Dutta, Prajit, and Ananth Madhavan, 1997, Competition and collusion in dealer markets, Journal of Finance 52, 245-276.
7. Ellis, Katrina, Roni Michaely, and Maureen O'Hara, 2000, When the underwriter is the market maker: An examination of after-market trading in IPOs, Journal of Finance 55, 1039-1074.
8. Ellis, Katrina, Roni Michaely, and Maureen O'Hara, 2001, The making of a deal market: From entry to equilibrium in the trading of Nasdaq stocks, Working paper, Cornell University.
9. Godek, Paul, 1996, Why Nasdaq market makers avoid odd-eighth quotes, Journal of Financial Economics 41, 465-474.
10. Hansch, Oliver, Navayan Naik, and S. Viswanathan, 1999, Preferencing, internalization, best execution, and dealer profits, Journal of Finance 54, 1799-1828.
11. Huang, Roger, and Hans Stoll, 1996, Dealer versus auction markets: A paired comparison of execution costs on Nasdaq and NYSE, Journal of Financial Economics 41, 313-358.
12. Kandel, Eugene, and Leslie Marx, 1997, Nasdaq market structure and spread patterns, Journal of Financial Economics 45, 61-89.
13. Kandel, Eugene, and Leslie Marx, 1999, Payments for order flow on Nasdaq, Journal of Finance 54, 35-66.
14. Klock, Mark, and Timothy McCormick, 1998, The impact of market-maker competition on Nasdaq spreads, Working paper, George Washington University.
15. Madhavan, Ananth, and George Sofianos, 1998, An empirical analysis of NYSE specialist trading, Journal of Financial Economics 48, 189-210.
16. Neuberger, Anthony, 1992, An empirical examination of market maker profits on the London Stock Exchange, Journal of Financial Services Research 6, 343-372.
17. Reiss, Peter, and Ingrid M. Werner, 1996, Transactions costs in dealer markets: Evidence from the London Stock Exchange, in Andrew Lo, ed: The Industrial Organization and Regulation of the Securities Industry (University of Chicago Press, Chicago, IL).
18. Reiss, Peter, and Ingrid M. Werner, 1998, Does risk-sharing motivate interdealer trading? Journal of Finance 53, 1657-1704.
19. Schultz, Paul, 2000, The market for market-making, Working paper, University of Notre Dame.
20. Schultz, Paul, and M. Zaman, 1994, Aftermarket support and underpricing of initial public offerings, Journal of Financial Economics 35, 199-220.
21. Wahal, Sunil, 1997, Entry, exit, market makers, and the bid-ask spread, Review of Financial Studies 10, 871-901.