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Have Stock Prices become more Uniformly Distributed?

Author

Listed:
  • Ahmed Baig

    (Lahore University of Management Science)

  • Nasim Sabah

    (Framingham State University)

  • Drew Winters

    (Texas Tech University)

Abstract

We find that: (1) prices cluster on 0¢ and 5¢, (2) prices cluster at the close and intraday, (3) intraday prices cluster more than closing prices with the difference increasing through time, and (4) price clustering declines with time. Our results suggest several paths for future research.

Suggested Citation

  • Ahmed Baig & Nasim Sabah & Drew Winters, 2019. "Have Stock Prices become more Uniformly Distributed?," Economics Bulletin, AccessEcon, vol. 39(2), pages 1242-1250.
    • Handle: RePEc:ebl:ecbull:eb-19-00450
    as

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    File URL: http://www.accessecon.com/Pubs/EB/2019/Volume39/EB-19-V39-I2-P118.pdf
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    price clustering; intra-day clustering; round prices; time;
    All these keywords.

    JEL classification:

    • G1 - Financial Economics - - General Financial Markets

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