ABSTRACT
Many stock markets in the world are subject to some form of restrictions or barriers. These include voting rights, taxes, capital flows, investment-profit repatriation, and ownership restrictions. It is understandable that any form of limitation creates a barrier of capital flow. Hence, the price behavior of a restricted stock may be different from that of an unrestricted one. An extreme type of barrier is ownership restriction. Ownership restrictions are usually used to prevent foreigners from owning a controlling interest of a country’s companies.
