Informed investors, screening, and sorting on the London capital market, 1891-1913

Sturla Fjesme, Leslie Hannah, Lyndon Moore

Research output: Contribution to journalArticleResearchpeer-review


Thousands of prospectuses offered shares to British investors at the turn of the twentieth century. We find evidence that there were informed investors who participated in the market at this time. Firms that attracted additional investor demand were more likely to be listed on the London Stock Exchange, survive longer, and achieve better long-run equity returns. We find that the exchange screened lower quality firms away from the main board. The lowest quality firms sorted themselves and did not apply to either the London Stock Exchange main or second board.

Original languageEnglish
Article number101515
Number of pages15
JournalExplorations in Economic History
Publication statusPublished - Jan 2024


  • Capital markets
  • Initial public offering
  • London stock exchange

Cite this