CHICAGO -- The prospect of takeover premiums has allowed small-cap bank stocks to outperform larger-cap stocks, says Gregory P. Anderson, an analyst with Chicago Corp.

The Nasdaq's bank index, which is mostly made up of small-cap bank stocks, has moved up 12% since the beginning of April, while the bank stock options traded on the Philadelphia exchange, which is made up mainly of larger institutions, were up 8%. The S&P 500 was up 3% for the same period.

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