Manapol Ekkayokkaya, Suppasit Jirajaroenying, Christian Wolff, 09 January 2019

Retail investors are generally considered to be uninformed noise traders, but a recent literature suggests that such investors accumulate novel information about smaller stocks. Using new data from Thailand, this column argues that retail investors systematically outperform institutions, especially domestic institutions. In addition, retail investors have a comparative advantage in executing trades of small stocks. 

José Albuquerque de Sousa, Thorsten Beck, Peter van Bergeijk, Mathijs van Dijk, 17 November 2016

Well-developed and efficient financial markets are important contributors to the economic growth of developing economies. Unfortunately, many low- and middle-income countries lack liquid public capital markets. This column explores the performance of stock exchanges opened since 1975 across a sample of countries. A minimum number of listings and turnover in the first five years appear to be necessary conditions for success over the first two decades. Developing countries considering opening a stock exchange should ensure that there is sufficient interest from firms and investors.

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