Aggregate short interest and market valuations / Owen A. Lamont, Jeremy C. Stein.

Author/creator Lamont, Owen A.
Other author Stein, Jeremy C.
Other author National Bureau of Economic Research.
Format Electronic
Publication InfoCambridge, MA : National Bureau of Economic Research,
Supplemental ContentFull text available from NBER Working Papers
Subjects

SeriesNBER working paper series ; working paper 10218
Working paper series (National Bureau of Economic Research : Online) ; working paper no. 10218. UNAUTHORIZED
Summary "We examine some basic data on the evolution of aggregate short interest, both during the dot-com era, and at other times in history. Total short interest moves in a countercyclical fashion. For example, short interest in NASDAQ stocks actually declines as the NASDAQ index approaches its peak. Moreover, this decline does not seem to reflect a substitution away from outright short-selling and towards put options, as the ratio of put-to-call volume displays the same countercyclical tendency. The evidence suggests that: i. arbitrageurs are reluctant to bet against aggregate mispricings; and ii. short-selling does not play a particularly helpful role in stabilizing the overall stock market"--National Bureau of Economic Research web site.
General noteTitle from PDF file as viewed on 1/19/2005.
Bibliography noteIncludes bibliographical references.
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Technical detailsMode of access: World Wide Web
Genre/formElectronic books.
LCCN 2005616003