Yadav, Pradeep; Fotak, Veljko; Raman, Vikas - 2009
with naked short selling. However, naked shorting can also have beneficial effects for liquidity and pricing efficiency. We … reduction in positive pricing errors, the volatility of stock price returns, bid-ask spreads, and pricing error volatility. We … find that the ban did not slow the price decline of those securities and had a negative impact on liquidity and pricing …