The US Securities and Exchange Commission (SEC) revoked the uptick rule in July 2007. The revocation of the uptick rule provides us with a unique setting to investigate the impact of short-sale constraints on various short-selling strategies in a controlled environment. It shows that contrarian...

This article investigates the impact of short sale constraints on stock returns in a powerful setting in which the uptick rule on the New York Stock Exchange (NYSE) was suspended for a given set of stocks (pilot stocks) by the Securities and Exchange Commission (SEC) in 2005. Comparing future...