The Suitability of Exercise and Hold
By: Craig McCann and Dengpan Luo (Jun 2002)
Hundreds of lawsuits are currently working their way through the courts and arbitration panels over a strategy referred to as exercise and hold. The advice to exercise employee stock options and hold the acquired stock is essentially advice to acquire and maintain a concentrated position. As such, the advice to exercise and hold can be evaluated within the familiar suitability framework.
Churning
By: Craig McCann (Dec 2001)
In this paper, Dr. McCann improves upon traditional indicators of churning and demonstrates that, properly calculated, the trading costs estimate of damages closely parallels the well-managed theory, or benchmark portfolio, estimate of damages.
Bid-Ask Spread, Sales Credits and Brokers' Compensation
By: Craig McCann and Richard G. Himelrick (Jun 2001)
In this working paper, co-authored with Richard Himelrick, Esq., Dr. McCann explains the role of market makers and the provision of sales credits as a basis for brokers' compensation.
McCann On Trading Models
By: Craig McCann (Jun 2000)
Stock trading models are used by economists to estimate damages in securities class action lawsuits. In this note, we explain the three types of models used by plaintiffs' and defendants' experts.
