A proposal to stabilize stock prices

Professor of Economics and Finance at the Graduate School of Business Administration at New York University in New York (NY 10006). He is grateful for the helpful comments of Yakov Amihud, Kalman Cohen, Mustafa Gultekin, Joel Hasbrouck, Jar1 Kallberg, Robert Kavesh, Marcia Kramer, and members of the joint Duke University and University of North Carolina workshop on security market microstructure.