<p class="MsoBodyText2" style="margin: 0in 34.2pt 0pt 0.5in;"><span style="font-size: 10pt;"><span style="font-family: Times New Roman;">This paper examines the empirical association between stock market development and economic growth for a period of ten years around the Indian market &ldquo;liberalization&rdquo; event.<span style="mso-spacerun: yes;">&nbsp; </span>We find no support for the hypothesis that the Indian stock market development is associated with the economic growth in that country during the entire event study period of 1981 to 2001.<span style="mso-spacerun: yes;">&nbsp; </span>We find support for relevance of stock market to econmic development during the pre-liberalization sub-period.<span style="mso-spacerun: yes;">&nbsp; </span>We also find a negative correlation between stock market development and economic growth for the post-liberalization period.<span style="mso-spacerun: yes;">&nbsp; </span>We offer a number of hypotheses consistent with the inverse relationship between growth and stock market development in the post-liberalization period.<span style="mso-spacerun: yes;">&nbsp; </span>In particular, our results are consistent with the suggestion that the Indian Stock market is a casino for the sub-period of<span style="mso-spacerun: yes;">&nbsp; </span>post liberalization and for the entire ten-year event study period.</span></span></p>

Contingent convertible (CoCo) bonds convert to equity during financial distress. They help transfer the responsibility for bearing the costs of poor performance from the taxpayers to the bank owners. Our results are thus relevant for investors, financial decision-makers, and regulators. We analyze the effects of the pioneering use of CoCos in Europe by Lloyds Banking Group in 2009. The bank’s motivation for the issue is explored, considering both its economic situation and the Basel III regulations. We document a reduction in the bank’s market value following the announcement of the intention to issue CoCos. Simultaneously, the credit default swap spread goes up. This study suggests that CoCos can have a negative effect on a bank’s creditworthiness and firm value.

The objective of this case is to teach and initiate a class discussion about the Primex proposal and minimum bid price requirements at NASDAQ.  The discussion is facilitated by a real world case example that focuses on current NASDAQ market woes.  Issues central to the performance of NASDAQ as a market place are analyzed.  In addition, this study considers the effect of the merger of Instinet and Island on NASDAQ and evaluates NASDAQ's IPO decision.

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