money left on the table reflects the dysfunctional nature of the securities
lending market. The system is just not set up to facilitate lending of shares
held primarily in retail accounts. Further, most of the outstanding shares in
the subsidiaries were held by parents, and there are several reasons why
parents do not lend out their subsidiary shares. First, it is typically the case
MISPRICING IN TECH STOCK CARVE-OUTS 153
!" # !" # Figure 4.5. 3Com/Palm: actual stub, synthetic stub, and short interest, March 3,
2000–July 21, 2000.
"
#
$ % &%#'
$
(&%#' )
%
$
(&%#'Figure 4.6. Methode/Stratos: actual stub, synthetic stub, and short interest, June 3,
2000–April 27, 2001.