Charoenwong, Charlie; Ding, David K.; Wang, Ping - In: International Review of Financial Analysis 29 (2013) C, pp. 107-118
We examine the influence of SEC's Rule 105 on informed trading and the information content of stock prices around an SEO's offer day. We show that constraints on short sales inhibit informed trading and hamper incorporation of information into stock prices for offers whose traders have private...