Abstract
This paper demonstrates that easily processed texts affect investor trading behavior even in the absence of any informational content. We focus on characteristics of stock tickers and show that stocks with tickers that are actual words in the English language are more liquid, as measured by higher turnover and trading volume, and lower spreads. The preference toward tickers that are words prevails among retail investors, but does not affect institutional investors. This is consistent with the explanation that ticker characteristics facilitate trading by improving the firm’s visibility among retail investors through channels of familiarity and memorization.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
