Federal Reserve Bank of Atlanta E C O N O M I C R E V I E W Second Quarter 2002 D o financial markets offer higher rewards in the form of average returns for holding risks related to recessions and financial distress in addition to the risks from overall market movements? The answer to this question is related to the way financial economists understand the investment world. Fifteen years ago, f...

During the latest episode of general election held in Malaysia, it is observed that the FBMKLCI index was lifted 62.52 points in a day soon after the announcement of election outcome. Moreover, the index registered a highest gain of 96.29 points in the middle of the intra-day trade. This suggests that investors who had got the right direction could make profitable intra-day trading the next tra...

This paper examines the impact of tick size reduction on price continuity in the Taiwan stock market where employs call auction method throughout the entire trading day. Using the intraday data from September 1, 2004 to August 31, 2005, the results indicate that the price continuity of call stock market could be improved after tick size reduction. A smaller tick size is associated with a lower ...

Background: Customs in the world of business today is one of the most important pillars that regulates trade relations between individuals and legal entities, private, public and international law. Among the actors in this field, in addition to national and transnational governments and companies, there is a new phenomenon called the market. The market plays an important role in considering val...

Middlemen in Limit-Order Markets A limit-order market enables an early seller to trade with a late buyer by leaving a price quote. But, public news in the interarrival period creates adverse selection for the seller and therefore hampers trade. High-frequency traders/machines (HFT) might restore trade by bringing the capacity to quickly update quotes on news. A theoretical model shows that HFT ...

International trade has become an integrated part of our everyday lives. Many, if not all, of the foods we eat and the clothes we wear today are consequences of trade, one way or another. Not a single day passes without contemporary media covering several reports on world trade. During the past six decades of the modern trading system, the volume of world trade increased more than twenty times....

stock return is usually considered to be affected by firm’s financial ratios as well as economic variables. fundamental method assume that stock returns is not solely related to the stock market. most result come from the company condition , industry situation and whole economy. in this paper, this relationship between stock return and fundamentals is studied using the data for 22 pharmaceutica...

Among non-oil exports and in trade arena, drug has always been strategic importance and most government especially industrialized countries pay special attention to its production and trade issues. Thus, having a comprehensive view from economic perspective to this section is essential for suggesting intervention. This was a descriptive-analytical and panel study. In this study, gravity model i...