Jonathan Hoenig - How Companies Can Pretty Up Their Stock
Just like Macy's window displays or Beverly Hill's Rodeo Drive, people browse through the stock market looking to shop. To that end, beyond innovative products or stellar earnings, there are a few tips and tricks companies can use to help motivate us to buy their wears, that is, their shares.
One common (now almost cliché) example is to use a catchy ticker symbol, such as Harley Davidson or Sotheby's, which studies have demonstrated can have an impact on returns, at least over the short run. The "food fund" Dynamic Food & Beverage Portfolio with the memorable "PBJ" ticker we wr ote, about last summer has since gained about 37%; one of it's biggest components, Yum! Brand, which also has a clever ticker symbol, is up over 40%.