The purpose of this paper is to examine the initial pricing of a form of convertible preferred stock, PERCS (preferred equity redemption cumulative stock). The analysis shows that investors may pay more for the PERCS than the value of the individual components of the financially engineered...

This paper looks at the addition of stocks to New Zealand's NZSE40 index and investigates whether price and volume effects support the price pressure hypothesis or the informational efficiencies described by Merton's attention hypothesis. Unlike the US experience, a description of trading on the...