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Informed investors, screening, and sorting on the London capital market, 1891-1913


  • Fjesme, Sturla
  • Hannah, Leslie
  • Moore, Lyndon


Thousands of prospectuses offered shares to British investors at the turn of the twentieth century. We find evidence that there were informed investors who participated in the market at this time. Firms that attracted additional investor demand were more likely to be listed on the London Stock Exchange, survive longer, and achieve better long-run equity returns. We find that the exchange screened lower quality firms away from the main board. The lowest quality firms sorted themselves and did not apply to either the London Stock Exchange main or second board.

Suggested Citation

  • Fjesme, Sturla & Hannah, Leslie & Moore, Lyndon, 2024. "Informed investors, screening, and sorting on the London capital market, 1891-1913," Explorations in Economic History, Elsevier, vol. 91(C).
  • Handle: RePEc:eee:exehis:v:91:y:2024:i:c:s0014498323000098
    DOI: 10.1016/j.eeh.2023.101515

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    References listed on IDEAS

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    More about this item


    London stock exchange; Capital markets; Initial public offering;
    All these keywords.

    JEL classification:

    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • N2 - Economic History - - Financial Markets and Institutions


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