Anticipating the Stock Market Crash of 1929: The View from the Floor of the Stock Exchange
AbstractIn the months prior to the stock market crash of 1929, the price of a seat on the New York Stock Exchange was abnormally low. Rising stock prices and volume should have driven up seat prices during the boom of 1929; instead there were negative cumulative abnormal returns to seats of approximately 20 percent in the months just before the crash. At the same time, trading nearly ceased in the thin markets for seats on the regional exchanges. Brokers appear thus to have anticipated the October 1929 crash, although investors in the market apparently did not recognize this information.
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Bibliographic InfoPaper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 12661.
Date of creation: Nov 2006
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Publication status: published as Atack, Jeremy and Larry Neal (eds.) The Origins and Development of Financial Markets and Institutions. New York: Cambridge University Press, 2009.
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Find related papers by JEL classification:
- G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)
- N22 - Economic History - - Financial Markets and Institutions - - - U.S.; Canada: 1913-
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-11-18 (All new papers)
- NEP-HIS-2006-11-18 (Business, Economic & Financial History)
- NEP-MST-2006-11-18 (Market Microstructure)
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