Stock Margins and the Conditional Probability of Price Reversals

11 Pages Posted: 21 Jun 2006

See all articles by James T. Moser

James T. Moser

American University - Kogod School of Business

Paul Kofman

The University of Melbourne

Abstract

We study the conditional probability of stock price reversals. The key conditioning variable is the level of margin required. We find that low margin levels are significantly related increased probability of price reversals.

Keywords: stock, margin

Suggested Citation

Moser, James T. and Kofman, Paul, Stock Margins and the Conditional Probability of Price Reversals. Economic Perspectives, 3rd Quarter, 2001. Available at SSRN: https://ssrn.com/abstract=910279

James T. Moser (Contact Author)

American University - Kogod School of Business ( email )

4400 Massachusetts Avenue NW
Washington, DC 20816-8044
United States

Paul Kofman

The University of Melbourne ( email )

Faculty of Economics and Commerce
Department of Finance
Parkville, Victoria 3010
Australia
61 3 8344 3794 (Phone)

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