Hostname: page-component-7dd5485656-wlg5v Total loading time: 0 Render date: 2025-10-30T08:08:16.414Z Has data issue: false hasContentIssue false
  • English
  • Français

Parallel Trading by Institutional Investors

Published online by Cambridge University Press:  19 October 2009

Alan Kraus  and
Hans R. Stoll
Get access Rights & Permissions [Opens in a new window]

Extract

A belief frequently expressed by observers of the stock market is that groups of institutions tend to trade in the same way at the same time. Two expressions of this belief follow:

Frequently reference is made to the ‘impact’ of institutional investors on the stock market. Apparently it is worrisome to the observers of the markets to find that we tend to buy and sell somewhat in unison.

Information

Type
Research Article
Information
Journal of Financial and Quantitative Analysis , Volume 7 , Issue 5 , December 1972 , pp. 2107 - 2138
Copyright
Copyright © School of Business Administration, University of Washington 1972

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

Article purchase

Temporarily unavailable

References

[1]Fama, E. “Efficient Capital Markets: A Review of Theory and Empirical Work.” Journal of Finance, vol. 25 (May 1970), pp. 383–417.CrossRefGoogle Scholar
[2]Fisher, L.“On the Estimation of Systematic Risk.”Paper presented at Wells Fargo Symposium,San Francisco,July 26, 1971.Google Scholar
[3]Friend, I.; Blume, M.; and Crockett, J.. Mutual Funds and Other Institutional Investors: A New Perspective. New York: McGraw-Hill, 1970.Google Scholar
[4]Goodman, G.The Money Game by ‘Adam Smith’. New York: Random House, 1968.Google Scholar
[5]Scholes, M. “The Market for Securities: Substitution Versus Price Pressure and the Effects of Information on Share Prices.” Journal of Business, vol. 45 (April 1972), pp. 179–211.CrossRefGoogle Scholar
[6]Securities and Exchange Commission. Institutional Investory Study Report of the Securities and Exchange Commission. 92nd Congress, 1st Session, House Document No. 92–64, Washington, D.C.: U.S. Government Printing office, 1971.Google Scholar
[7]Sharpe, W. “A Simplified Model for Portfolio Analysis.” Management Science, vol. 9 (January 1963), pp. 277–293.CrossRefGoogle Scholar
[8]Smidt, S. “Market-Making for Stocks: Competition Versus Regulated Monopoly.” Unpublished paper, 1971.Google Scholar