We investigate how short sellers strategically exploit the liquidity generated by the arrival of ambiguous information – i.e. information likely to cause disagreement in interpretation. Using a sample of newspaper articles, media newswires, and press releases, we construct a measure of...

This article empirically examines the influence of the SEC's Rule 105, Regulation M, on informed trading and the information content of stock prices surrounding the offer day of a seasoned equity offering (SEO). The results of this study show that the constraints on short sales imposed by the...