Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments July 26, 2021 erstellt
Beschreibung:
This paper argues that short selling might give rise to bubbles that would otherwise not exist in equilibrium. It is crucial for the argument that short selling is not the same as issuing an asset: it may require buying the stock later on. An asset with no fundamental value might be traded at positive prices because short selling raises the stock's future demand. Several features of our model resemble the short-squeeze episodes of 2021