Emerging stock markets are dominated with overconfident individual investors and in those markets short-sale constraints are frequently used to promote market stability. The unique market participants and regulations may influence the formation of stock prices and potentially lead to stock...

The resale option hypothesis proposed by Scheinkman and Xiong (2003) using stocks traded on the Taiwan Stock Exchange is supported by static and dynamic relations between resale option value and differences of opinion. Higher volatility of differences of opinion also leads to higher resale...