HONG, HARRISON; SCHEINKMAN, JOSÉ; XIONG, WEI - In: Journal of Finance 61 (2006) 3, pp. 1073-1117
We model the relationship between asset float (tradeable shares) and speculative bubbles. Investors with heterogeneous beliefs and short-sales constraints trade a stock with limited float because of insider lockups. A bubble arises as price overweighs optimists' beliefs and investors anticipate...