BioCentury
ARTICLE | Finance

2001 Financial Markets Preview: Job 1: Keep the investors

January 2, 2001 8:00 AM UTC

Investors tend to focus on stock prices to measure the health of companies and the market in general. But volume also is important because of its effect on the ability of investors to get in and out of stocks.

One of the most notable changes in the biotech group in recent years is its transformation from a thinly traded sector with limited liquidity into one with volumes high enough to enable larger investors to trade in the group. Going into 2001, a key issue is whether the weakening both in NASDAQ as a whole and biotech specifically could create a liquidity crunch that could drive non-core buyers from the space...