Sentences with phrase «stock illiquidity»

We argue that the substantial average return surrounding a RM is compensation for shell stock illiquidity and the uncertainty of finding a reverse merger suitor.

Not exact matches

Private equity's illiquidity makes it riskier than publicly traded stock.

If stocks provide a better return with better liquidity and bonds provide a similar yield with better liquidity (and collateral), why take on the illiquidity at all?»

Having traded small and microcap stocks, and traded illiquid bonds, I am less afraid of illiquidity than many are.

So although panic selling can disrupt the order book, especially during periods of illiquidity, with the current structure «the stock market» being based off of three composite indexes, can never crash, because there will always exist a company that is not exposed to broad market fluctuations and will be performing better by fundamentals and share price.

There are other dimensions of unpopularity, beyond risk — including illiquidity and small - cap and value stocks, although risk is implicit in the first two of those.

Value stocks» outperformance is even more pronounced for small and mid cap companies, because they tend to trade at even bigger discounts due to illiquidity and lack of analyst coverage, as well as being able to achieve higher growth rates than larger companies.

The bid - ask spread on these stocks, as a percentage of the stock price, is huge (20 - 25 %) and the illiquidity can also cause large price changes on trading — you push the price up as you buy and the price down as you sell.

Yes, it's true that the real estate transactions costs and illiquidity can be costly for real estate buyers, but 6 % load fees, lockup periods, 20 % hedge fund fees, and 9 % margin rates haven't stopped stock speculators either.

The bulk of the opportunities remain in undervalued, smaller, more illiquid situations that often represent average or slightly above - average businesses — these stocks, having largely missed out on the speculative ride up, have nevertheless frequently been pushed down to absurd levels owing to their illiquidity during a general market panic.

alternative liquidity option to mitigate the illiquidity of the MNOV stock 7.

the vic writeup suggests an 18 % illiquidity discount on top of any discount related to the 15 % of ev stock purchase discount for management.

The small - cap stock may have a higher expected rate of return but that is to compensate the owner for a greater amount of uncertainty, volatility, and possible illiquidity.

Following standard practice, the authors first divide the universe into large and small stocks, and then partition the large - and small - stock subsets by factor strategy — value, momentum, low beta, quality, and illiquidity — to construct high - characteristic and low - characteristic portfolios weighted by market capitalization.

«It is a basic fact in finance literature that there is a liquidity premium for easily saleable, publicly traded securities, and an illiquidity discount for closely held companies whose stock is not saleable.»