Skip to main content

A fuller theory of short selling

Buy Article:

$43.00 plus tax (Refund Policy)

Abstract:

The expression ‘greed and fear move markets’ is commonly cited to explain trading activity. In this paper, greed and fear form the intellectual basis of a theory explaining short selling activity. The theory describes two independent demands for shares to short sell, one based on future price expectations and one based on financial distress. With the number of shares available to be borrowed rigidly determined by institutional factors, the theory focuses on the quantity of shares shorted. An empirical test of the theory is conducted using a sample of bankrupt companies. The theory's implications are supported by the data and lend strong credence to the importance of greed and fear among short sellers.Journal of Asset Management (2004) 5, 49–63; doi:10.1057/palgrave.jam.2240127

Document Type: Research Article

DOI: http://dx.doi.org/10.1057/palgrave.jam.2240127

Publication date: June 1, 2004

pal/jam/2004/00000005/00000001/art00006
dcterms_title,dcterms_description,pub_keyword
6
5
20
40
5

Access Key

Free Content
Free content
New Content
New content
Open Access Content
Open access content
Subscribed Content
Subscribed content
Free Trial Content
Free trial content
Cookie Policy
X
Cookie Policy
ingentaconnect website makes use of cookies so as to keep track of data that you have filled in. I am Happy with this Find out more