Market Bubbles And Wasteful Avoidance: Tax And Regulatory Constraints On Short Sales
- Topics:
- Assessment
- Tags:
- Constraint,
- Finance,
- Financial Accounting,
- Financial Planning,
- Sales,
- Sales Force Management,
- Sales Strategy,
- Social Science Electronic Publishing Inc.,
- Taxes
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Overview: From the executive summary: ‘Although short sales make an important contribution to financial markets, this transaction faces legal constraints that do not govern long positions. In evaluating these constraints, other commentators, who are virtually all economists, have not focused rigorously enough on the precise contours of current law. Some short sale constraints are mischaracterized, while others are omitted entirely. Likewise, the existing literature neglects many strategies in which well-advised investors circumvent these constraints; this avoidance may reduce the impact of short sale constraints on market prices, but may contribute to social waste in other ways. To fill these gaps in the literature, the paper offers a careful look at current law and draws conclusions.’
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Format: PDF | Size: 418KB | Date: Jan 2003 | Pages: 54
