Shackling short sellers: The 2008 shorting ban
In September 2008, the U.S. Securities and Exchange Commission (SEC) temporarily banned most short sales in nearly 1,000 financial stocks. We examine the ban's effect on market quality, shorting activity, the aggressiveness of short sellers, and stock prices. The ban's effects are concentr...
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sg-smu-ink.lkcsb_research-56862020-02-24T07:50:57Z Shackling short sellers: The 2008 shorting ban BOEHMER, Ekkehart JONES, Charles M. ZHANG, Xiaoyan In September 2008, the U.S. Securities and Exchange Commission (SEC) temporarily banned most short sales in nearly 1,000 financial stocks. We examine the ban's effect on market quality, shorting activity, the aggressiveness of short sellers, and stock prices. The ban's effects are concentrated in larger stocks; there is little effect on firms in the lower half of the size distribution. Although shorting activity drops by about 77% in large-cap stocks, stock prices appear unaffected by the ban. All but the smallest quartile of firms subject to the ban suffer a severe degradation in market quality. 2013-06-01T07:00:00Z text application/pdf https://ink.library.smu.edu.sg/lkcsb_research/4687 info:doi/10.1093/rfs/hht017 https://ink.library.smu.edu.sg/context/lkcsb_research/article/5686/viewcontent/TacklingShortSellers2008Ban_rfs_2013.pdf http://creativecommons.org/licenses/by-nc-nd/4.0/ Research Collection Lee Kong Chian School Of Business eng Institutional Knowledge at Singapore Management University short sales price efficiency option markets liquidity uncertainty quality world time bear Finance and Financial Management Portfolio and Security Analysis |
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short sales price efficiency option markets liquidity uncertainty quality world time bear Finance and Financial Management Portfolio and Security Analysis BOEHMER, Ekkehart JONES, Charles M. ZHANG, Xiaoyan Shackling short sellers: The 2008 shorting ban |
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In September 2008, the U.S. Securities and Exchange Commission (SEC) temporarily banned most short sales in nearly 1,000 financial stocks. We examine the ban's effect on market quality, shorting activity, the aggressiveness of short sellers, and stock prices. The ban's effects are concentrated in larger stocks; there is little effect on firms in the lower half of the size distribution. Although shorting activity drops by about 77% in large-cap stocks, stock prices appear unaffected by the ban. All but the smallest quartile of firms subject to the ban suffer a severe degradation in market quality. |
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BOEHMER, Ekkehart JONES, Charles M. ZHANG, Xiaoyan |
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BOEHMER, Ekkehart JONES, Charles M. ZHANG, Xiaoyan |
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BOEHMER, Ekkehart |
title |
Shackling short sellers: The 2008 shorting ban |
title_short |
Shackling short sellers: The 2008 shorting ban |
title_full |
Shackling short sellers: The 2008 shorting ban |
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Shackling short sellers: The 2008 shorting ban |
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Shackling short sellers: The 2008 shorting ban |
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shackling short sellers: the 2008 shorting ban |
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Institutional Knowledge at Singapore Management University |
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2013 |
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https://ink.library.smu.edu.sg/lkcsb_research/4687 https://ink.library.smu.edu.sg/context/lkcsb_research/article/5686/viewcontent/TacklingShortSellers2008Ban_rfs_2013.pdf |
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