“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.”
“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.”
“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.”
“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.”
“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.”
