We examine how fund flows that are correlated with subsequent fund returns can impact the performance of open-end mutual fund through a dilution effect. Since these flows tend to put cash into a fund just prior to positive returns on the fund?s risky assets, the cash dilutes the fund?s return....

Open-end mutual funds usually rely on the closing prices of the assets they hold to compute their net asset value (NAV), a price at which funds stand ready to buy and sell their own shares. Since the underlying assets' closing prices might be hours or even days old, the fund's NAV can be stale....

We empirically demonstrate that the opportunities the Boston Stock Exchange and the Cincinnati Stock Exchange offer members to take the other side of their customers' orders through affiliated market makers (to internalize orders) have little short-run effect on posted or effective bid-ask...

We examine the impact deciding to route limit orders away from the New York Stock Exchange (NYSE) has on three dimensions of execution quality with methodologies controlling for market conditions and order submission strategies. Overall differences in limit order execution quality between...

How does increased noise trading affect market liquidity and trading costs? We use "The Wall Street Journal"'s "Investment Dartboard" column, which stimulates noise trading, as a natural experiment to evaluate models of the bid-ask spread. We find that substantial increases in trading volume and...