Skip to main content
Article
Institutional Investors As Short Sellers?
UF Law Faculty Publications
  • Peter Molk, University of Florida Levin College of Law
  • Frank Partnoy
Document Type
Article
Publication Date
1-1-2019
Disciplines
Abstract

Short selling has the potential to improve the efficiency and fairness of equity markets. Yet institutional investors face both private and regulatory constraints to short selling. We document these obstacles and consider the potential benefits of removing them. We advocate that institutional investors engage in more short selling as part of overall net-long equity strategies, such as a leveraged passive equity index combined with an actively managed short position of a size comparable to the amount of leverage.

Citation Information
Peter Molk & Frank Partnoy, Institutional Investors As Short Sellers?, 99 B.U. L. Rev. 837 (2019)