Monday, September 07, 2009

SSRN-Short Sales, Limits to Arbitrage and Fundamental Value by Dirk Brounen, Melissa Porras Prado, Marno Verbeek

Score another for short sales!

SSRN-Short Sales, Limits to Arbitrage and Fundamental Value by Dirk Brounen, Melissa Porras Prado, Marno Verbeek:
"The presence of short sale constraints ensures that pessimistic investors' negative information is not reflected in the stock price as they are not able to sell short, short sales hamper the tendency of the optimist to bid up prices."

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