We introduce an evolutionary equilibrium asset pricing model with heterogeneous agents who can either act as brokers or hedge funds. Hedge funds can trade on margin, taking short or (leveraged) long positions in the assets. Brokers provide asset loans and credit to margin traders. In any...

Chapter 1. Prologue -- Chapter 2. Introduction and Course of the Investigation -- Chapter 3. Forms of Securities Lending and Repo -- Chapter 4. Strategies With Securities Lending and Repos -- Chapter 5. Summary and Outlook -- Chapter 6. Epilogue.

Do short sales restrictions have an impact on security prices? We address this question in the context of a natural experiment surrounding the short sale ban of 2008 using a comprehensive sample of Canadian stocks cross-listed in the U.S. Among financial stocks, which were singled out by the ban...