• NYSE Seat Bubble of 1928
    • “When the position of the NYSE as the dominant exchange became threatened, the management of the exchange proposed a 25 percent increase in the number of seats in February 1929 by issuing a quarter-seat dividend to all members. While such a “stock split” would be expected to leave the aggregate value of the NYSE unchanged, an event study reveals that its value rose in anticipation of increased efficiency.”
  • Allocation Bias Before World War I
    • “The efficiency of Victorian portfolios could have been enhanced by investing a larger proportion in European assets. However, the ‘European preference’ of French investors did not prove to be inefficient.”
  • Financial Analysis Gone Mad?
    • “Investor behavior is examined during a period when market prices systematically deviate from fundamental values; that is, during a bubble. Specifically, the paper focuses on one of the most famous bubbles, that associated with the rise and fall of the South Sea Company during 1720.”
  • The Road to ETFs
    • “Similar to a past¬†article¬†discussing the ancient roots of active management, the road leading to ETFs can be traced back a thousand years. Since the 10th century in medieval Italy, innovative financial products have been designed to benefit smaller investors through diversification and lower costs.”
  • The Roaring 20s: Securitization
    • “A substantial retail appetite for real estate securities during this period may have significantly contributed to a real construction boom, but overly optimistic speculation in these securities may have led to overbuilding. The rapid deterioration of these securities and a near complete drop in issuance show, ex post, that investors were overconfident in building fundamentals during the boom years.”