search query: @author Swan, P. / total: 6
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| Author: | Aitken, M. Garvey, G. Swan, P. |
| Title: | How brokers facilitate trade for long-term clients in competitive securities markets |
| Journal: | Journal of Business
1995 : JAN, VOL. 68:1, p. 1-34 |
| Index terms: | TRADE MARKETS COMPETITION |
| Language: | eng |
| Abstract: | In adverse-selection models of security market microstructure, a market maker could enhance efficiency if he or she were willing to sustain short-term trading losses. The authors show that this desirable activity can br supported as a self-enforcing agreement between broker-dealers and long-lived clients. An implication is that brokers who sustain such losses should charge higher fees to long-term clients for trades where the broker merely receives a commission. |
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