Bui, Tuan Thi Ngoc; Sercu, Piet - In: Review of Business and Economics LIV (2009) 4, pp. 418-437
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...