Anyone thinking of investing in shares of thinly traded companies that trade on either system should beware.
Hedge funds may own thinly traded assets whose valuation can be complex and subjective, making valuation difficult.
Platinum group metals are also among the more thinly traded commodities, which can mean exaggerated price moves.
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Stocks in thinly traded overseas markets can rise and fall so rapidly that ETFs have trouble keeping up.
In thinly traded markets, bond prices can suddenly shoot up if only a few investors take fright and start selling.
In these deals NIR provides financing to publicly traded companies that are thinly traded, often in exchange for heavily discounted shares.
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What's going unnoticed, he believes, is that investors shy away from thinly traded stocks the same way diners avoid empty restaurants.
That's because his research indicates that thinly traded stocks tend to do better over time than their more actively traded cousins.
The only India names on the list were too thinly traded to be included on the Forbes BRIC Breaker ValuEngine list.
Some countries that have thinly traded bonds rely heavily on big banks that serve as primary dealers to buy their debt at auctions.
That is not always possible in finance: when markets are illiquid or thinly traded, hypothetical numbers may be needed to produce a benchmark.
Our portfolio comprises companies with intrinsic valuations above the current market due to pricing inefficiencies as these equities are underfollowed and thinly traded.
Hicks' main investment strategy has been to make private investments in public equities, known as PIPEs, in which Hicks invested in thinly traded stocks.
The thinly traded Emerging Global Shares Emerging Markets Energy Titans ETF (NYSE: EEO) devotes 4.37% of its weight to Hungary, making it a possible short candidate.
What's more, the bonds are priced off a thinly traded derivatives market that has been massively shorted lately and so may have exaggerated the odds of default.
In these deals, Ribotsky invested cash in thinly traded public companies, in return for securities convertible into discounted common shares, often causing the stock price to tumble.
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Ibbotson has studied stock returns back to 1972 and says thinly traded stocks beat highly liquid ones of equal market values in all four quartiles ranked by size.
But the municipal securities market is thinly traded and largely exempt from the controls of both the Securities Act of 1933 and the Securities Exchange Act of 1934.
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These markets for unregistered shares are opaque and thinly traded.
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Solution: If you are interested in a thinly traded stock, put in your bid, then yank it an hour later if a buttinsky quote pops up on your screen.
Then again, who remembers the disreputable Vancouver Stock Exchange, long a haven for thinly traded stocks that drilled unsuccessfully for one metal or another, which finally shuttered in 1999?
The Washington Post (nyse: WPO - news - people ), a closely held and thinly traded company, did its chest-thumping July 15 following the Coke announcement.
But Ms. Ting says there's a problem with modified market weighting: It gives undue influence to small stocks that may be difficult to buy and sell because they're thinly traded.
One issue for investors, according to Mr. Rosenbluth, is that this two-year-old fund is thinly traded and can have a wide bid-ask spread (the difference between the prices potential buyers "bid" to acquire shares and the prices potential sellers "ask" to part with theirs).
Some of these risks, according to Upendra Choudhary, senior vice president of credit services at Amba Research, include trading risk (some of these markets are thinly traded and have low liquidity), political risk and transparency risk (some areas have no or at least confusing accounting standards).
But Berkshire, England-based Celltech is thinly traded and little talked about in the U.S. Lately, it has mostly made it into the press because of a bidding war with Cambridge Antibody Technology (nasdaq: CATG - news - people ) for proteomics pioneer Oxford Glycosciences.
Considering the trading markets for currencies themselves, the dollar figures in 90 percent of those transactions, nearly 70 percent of global central bank holdings are denominated in dollars, and with cross border trade in mind for individuals in countries with thinly traded currencies, the dollar is the go-between currency of choice 90 percent of the time.
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This would often cause the stock of thinly-traded companies receiving the financing to plummet.
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Bond Connect also promises to tackle the problem of having millions of thinly-traded securities by allowing investors to trade portfolios of different bonds that, bundled together, have the characteristics the investor wants.
Yorkville Advisors, founded by 38-year-old Mark Angelo in 2001, is one of the largest hedge fund firms specializing in investing in thinly-traded and often illiquid outfits by making private investments in public equities, also known as PIPEs.
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