Phrases from Economic Article

[Curiosity 10]

Hello everybody.

 

I'm trying to translate one article about trading (called Reputation effects in trading on NYSE) but I just can't understand what the author wanted to say in some parts of the text. I really need your help and hope that at least someone will answer.

 

1. ''In the days before a specialist moves, floor brokers who do not expect to follow the specialist might become increasingly willing to trade on private information''

2. We begin by demonstrating that floor brokers typically do not follow a stock to its new trading location.

3. We find a discernible increase in liquidity costs for moving stocks.

4. In the days just before the move, we find that trading costs for brokers that move with the specialist to the stock's new location are somewhat less than the costs faced by nonmoving brokers.

 

What does the word ''move'' mean in the sentences above? What does the phrase ''floor broker follows the specialist''? Does it mean the floor broker changes his position or what? How floor broker can follow a stock to its new position? Here probably is an abstract meaning, right? What does liquidity costs mean (couldn't find it in the Internet).

 

I'm not trader, just now some general information and even this is not enough to translate the text above(

 

I hope such a thread is allowed here.

[JennyCanuck 10]

Hello everybody.

 

I'm trying to translate one article about trading (called Reputation effects in trading on NYSE) but I just can't understand what the author wanted to say in some parts of the text. I really need your help and hope that at least someone will answer.

 

1. ''In the days before a specialist moves, floor brokers who do not expect to follow the specialist might become increasingly willing to trade on private information''

2. We begin by demonstrating that floor brokers typically do not follow a stock to its new trading location.

3. We find a discernible increase in liquidity costs for moving stocks.

4. In the days just before the move, we find that trading costs for brokers that move with the specialist to the stock's new location are somewhat less than the costs faced by nonmoving brokers.

 

What does the word ''move'' mean in the sentences above? What does the phrase ''floor broker follows the specialist''? Does it mean the floor broker changes his position or what? How floor broker can follow a stock to its new position? Here probably is an abstract meaning, right? What does liquidity costs mean (couldn't find it in the Internet).

 

I'm not trader, just now some general information and even this is not enough to translate the text above(

 

I hope such a thread is allowed here.

 

Hi - this is what I gathered from a quick search, though I am by no means an expert on the exchange so feel free to correct me.

 

Each stock listed on the exchange has a specialist who works for the company. The specialist stands at one place and auctions out the stocks. Brokers gather near the specialist to buy/sell. Since the specialist is a person, he or she can move. In other words, we're not talking about abstract movement, but physical movement.

 

Hope this helps