Bridge over ocean
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.

Read the Complete Article in Financial Analysts Journal Financial Analysts Journal CFA Institute Member Content

We’re using cookies, but you can turn them off in Privacy Settings.  Otherwise, you are agreeing to our use of cookies.  Accepting cookies does not mean that we are collecting personal data. Learn more in our Privacy Policy.