Nyse Listed Quotes

An even earlier example was the rise of dark pool stock trading. In 1979, the U.S. Securities and Exchange Commission (SEC) instituted Rule 19c3, which allowed stocks listed on one exchange, such as the New York Stock Exchange (NYSE), to be traded off-exchange. Many large institutions moved their trading large blocks to these dark pools, where they traded peer to peer with far lower costs than traditional exchange-based trading.

Whatever the reason, the existence of some persistent investment factors is today accepted by almost every (if not all) financial economist and investor. In an ingenious bit of marketing, factors are often called “smart beta.” Sharpe himself grew to hate the term, as it implies that all other forms of beta are dumb.10 Most financial academics prefer the term “risk premia,” to more accurately reflect the fact that they think these factors primarily yield an investment premium from taking some kind of risk—even if they cannot always agree what the precise risk is. An important milestone was when Fama and his frequent collaborator Ken French—another Chicago finance professor who would later also join DFA—in 1992 published a paper with the oblique title “The Cross-Section of Expected Stock Returns.”11 It was a bombshell. In what would become known as the three-factor model, Fama and French used data on companies listed on the NYSE, the American Stock Exchange, and the Nasdaq from 1963 to 1990 and showed that both value (the tendency of cheap stocks to outperform expensive ones) and size (the tendency of smaller stocks to outperform bigger ones) were distinct factors from the broader market factor—the beta. Although Fama and French’s paper termed these factors as rewards for taking extra risks, coming from the father of the efficient-markets hypothesis, it was a signal event in the history of financial economics.12 Since then academics have identified a panoply of factors, with varying degrees of durability, strength, and acceptance. Of course, factors do not always work. They can go through long fallow stretches where they underperform the market. Value stocks, for example, suffered a miserable bout of performance in the dotcom bubble, when investors wanted to buy only trendy technology stocks. And to DFA’s chagrin, after small caps enjoyed a robust year in DFA’s first year of existence, they would then undergo a long, painful seven-year period of trailing dramatically behind the S&P 500.13 DFA managed to keep growing, losing very few clients, partly because it had always stressed to them that stretches like this could happen. But it was an uncomfortable period that led to many awkward conversations with clients.

Given the inefficiency of the Indian bureaucracy to effectively implement national objectives, a possible approach (as suggested by Prof. Kelkar once), to salvage the existing PSEs (including all its stakeholders) and to protect the State’s investment in them, would be to transfer all Government’s share in all PSEs to a holding company set up under the Disinvestment Act, at once. 8.4.4 Government should disinvest majority of its share (55 %) in the holding company to Indian mutual funds, and insurance companies through the book-building route, twenty per cent of its share to small investors through IPO (Initial Public Offer), five percent of its share to foreign institutional investors, ten per cent of its share through ADR/GDR in the foreign capital market (this would lead to improved corporate governance as listing in foreign markets, particularly NYSE has stringent requirements), and retain just ten per cent of share in the holding company. 8.4.5 The holding company should be managed by a reputed professional board (initially appointed by the Government through wide consultations and subsequently confirmed by the shareholders of the holding company). The Board would be responsible to its shareholders. The Board of the individual PSEs (which would no longer be a PSE as they would become subsidiaries of the holding private company) would be appointed by the holding company and be responsible to the Board of the holding company.

An NYSE listing teaches a company to be precise and moderate in the use of language. It