The Impact of Changes in Trading Location on a Security's Systematic Risk

Abstract

Listing of common stock on an exchange is believed by many to have a positive value for the firm. One implication of purported advantages has been improvement in the price of the stock when it is listed. Another advantage to an investor could be a reduction in the risk level of a security through trading location changes. The purpose of this research is to investigate the effect upon a security's risk level when its trading location is transferred to the New York Stock Exchange.