Bui, T. T. N.; Sercu, P. - In: Review of Business and Economic Literature LIV (2009) 4, pp. 418-438
Investors who want to profitably trade stocks which they believe to be undervalued or overvalued are facing not just transaction costs: also cash constraints and short-selling restriction can hinder them. Intuitively, the more onerous friction may seem to be short-selling: borrowing shares from...
