TY  - JOUR
T1  - What makes when-issued trading attractive to financial markets?
JF  - Financial Markets, Institutions and Instruments
Y1  - 2014
A1  - Brooks,Raymond
A1  - Kim,Yong H
A1  - Yang,Jimmy
KW  - Finance
AB  - When-issued trading is the trading of securities prior to the actual issue of the security. When-issued trading is active around the world and in a variety of equity and bond markets. In this survey, we provide a general description of when-issued trading, analyze benefits and costs in various financial markets, present existing theoretical models and predictions, and synthesize empirical findings. We find that when-issued trading promotes price discovery, mitigates information asymmetry, provides convenience for trading ahead of the actual issue of the security, and in some markets reduces volatility. In addition, we offer policy implications and suggest directions for further research in this area.
VL  - 23
CP  - 5
U2  - a
U4  - 68819267584
ID  - 68819267584
ER  -