The Nominal Price Puzzle

摘要: Nominal prices of common stocks have remained constant at around $30 per share since the Great Depression as a result firms splitting their stocks. It is surprising that actively maintained nominal price for shares while general in economy went up more than ten fold. This especially puzzling given commissions paid by investors on trading are about times those single $300 share. We estimate, example, had General Electric kept with inflation, stock would saved $100 million 2005. review potential explanations, including signaling and optimal range find none existing theories able to explain observed prices. suggest evidence consistent idea Norms (e.g. Akerlof, 2006) can puzzle.