The Nestlé crash

On November 17, 1988, the board of directors of Nestlé AG decided to allow foreign investors to hold Nestlé registered stock, reversing a longstanding practice. This decision had a tremendous impact on the prices of the firm's three classes of common stock, as well as on the prices of several other corporations traded on the Zürich stock exchange. These price changes can be explained by the hypothesis that demand curves slope down.

Heterogenität der Finanzökonomie. Zur Sexualität in Spielfilmen über die Börse

In this article, Dirk Verdicchio addresses the display of sexuality in cinematic movies on finance. He argues that the display of sexuality can be seen as a representation of the financial economy and asks how finance is perceived when it is envisioned by means of sexuality. Referring to George Bataille’s concepts of economy, heterogeneity, and erotics he argues that the display of sexuality in these films endangers conventional, bourgeois ideals and values – in Bataille’s terms: the financial economy threatens social homogeneity because of an inherent heterogeneity of the stock exchange. According to the analyzed movies, the financial economy is not only the site where the rationality of the economy appears in its purest form, but also the site where this principle collapses and turns into its opposite.

The Pricing Discount for Limited Liquidity: Evidence from SWX Swiss Exchange and the Nasdaq

We investigate the pricing discount for limited liquidity. Unlike previous studies that have examined the relation between histroical returns and liquidity, ours looks directly at current stock prices. This approach requires less data and yields up-to-date information about limited liquidity discounts. We analyze data from the Swiss exchange and the Nasdaq during 1995-2001, and find a statistically and economically significant price-liquidity relation in both markets. We test the robustness of that relation with a procedure that does not rely on specific distributional assumptions. Our findings are unaffected. Accordingly, the discount suffered by the least liquid securities is about 30%.