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opening auction only relates to low volume stocks. Low volume stock traders avoid trading until the open; this seems connected … to their evading the informed trading-dominated opening auction. For the largest volume stocks, the opening auction …
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The unmediated call auction is a useful trading mechanism to aggregate dispersed information. Its ability to … simple call auction game where both auction prices and limit prices of uninformed traders re?ect potential insider … information. The predictions of the model are tested in the laboratory. While an insider improves the call auction outcomes in …
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Using a Verreccia [1983]-type model, we study the optimal voluntary disclosure strategy of a manager with private information that helps the market interpret financial information the firm is required to report. In equilibrium, the manager’s disclosure strategy enhances upward or mitigates...
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