Critical Finance Review > Vol 14 > Issue 1

How the Stock Ticker Decreased Price Efficiency in the Early 20th Century

Barbara A. Bliss, University of San Diego, USA, bbliss@sandiego.edu , Mitch Warachka, Chapman University, USA, warachka@chapman.edu , Marc Weidenmier, Chapman University, USA, weidenmi@chapman.edu
 
Suggested Citation
Barbara A. Bliss, Mitch Warachka and Marc Weidenmier (2025), "How the Stock Ticker Decreased Price Efficiency in the Early 20th Century", Critical Finance Review: Vol. 14: No. 1, pp 65-100. http://dx.doi.org/10.1561/104.00000151

Publication Date: 19 Mar 2025
© 2025 Barbara A. Bliss, Mitch Warachka, and Marc Weidenmier
 
Subjects
 
Keywords
G14N2
Price disseminationTrend chasingReturn co-movement
 

Share

Download article
In this article:
1. Stock Ticker 
2. Price Efficiency 
3. Return Co-Movement 
4. Data Transmission Costs 
5. Conclusion 
Appendix 
References 

Abstract

We study the stock ticker; a physical device that historically disseminated stock price information. We find that an increased number of ticker subscriptions in a state strengthened the return continuation and return co-movement of firms headquartered in the state. This finding indicates that the increased dissemination of price information decreased price efficiency by increasing uninformed trend chasing and challenges the assumption that greater access to information improves price efficiency.

DOI:10.1561/104.00000151

Online Appendix | 104.00000151_app.pdf

This is the article’s accompanying appendix.

DOI: 10.1561/104.00000151_app