Aurora Borealis
1 January 1992 Financial Analysts Journal Volume 48, Issue 1

The Effect on Spread and Volume of Switching to the NASDAQ National Market System

  1. H. Kent Baker
  2. Richard B. Edelman

The over-the-counter market consists of several segments, the two most important being the NASDAQ and the NASDAQ/NMS. Each year, many companies switch from one segment to another. The evidence shows that moving from NASDAQ to NASDAQ/NMS tightens spreads and increases volume. These results suggest that NMS inclusion enhances liquidity by lowering transaction costs.
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Publisher Information
Association for Investment Management and Research doi.org/10.2469/faj.v48.n1.83 ISSN/ISBN: 0015-198X

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