The First of Many? The Microstructure Effects of Aeroflex Corporation's Move from the NYSE to the NASDAQ

On March 21, 2000, Aeroflex Corporation became the first company in history to voluntarily switch its equity listing from the New York Stock Exchange to the Nasdaq. This study presents a comprehensive analysis of the changes in trading dynamics observed in Aeroflex stock around the time of the switch. In results that challenge the wisdom of Aeroflex's management decision, the analysis documents economically and statistically significant degradations in key trading metrics such as the bid-ask spread and the number of equity trades. There are no observed improvements in trading or quoting behavior as a result of the move to the Nasdaq