Trading Volume Is High in IEM
November 3, 2004 | Pittsburg Post-GazetteJohn Kerry stock, in a "winner-take-all" contest run by the University of Iowa's Iowa Electronic Markets hit 68 cents per share at 4:45 p.m. EST, on Nov. 2 vs. 32 cents for President Bush. For most of the campaign, Bush had been either leading his rival or running neck and neck. But the past couple of days have brought a huge increase in trading volume, sending the number of shares changing hands to roughly 40,000, or 10 times normal on Monday, said GEORGE NEUMANN, co-founder and director of IEM. Neumann said that in the past several days, daytime trading has tended to give Kerry a lift that sometimes decreases overnight. He said IEM sponsors were at a loss to explain the pattern, but there was some speculation that it might be a "student effect" with students dominating trading during the day. The IEM, founded in 1988 as a research tool for students and faculty, has since opened its political markets to outside traders.
Contact: George Neumann