The authorities waived the restriction of short sale below the last closing price for the compositions of Taiwan 50 Index on May 16, 2007. We try to analyze the effects of waiving restriction by testing the characteristics of volatility, liquidity, and pricing error. After waiving, the volatilities are significantly becoming heavier for the whole samples and the sub-groups of financial sector or with larger market capital. The liquidities are becoming better for the whole samples and all sub-groups no matter what kind of grouping, in which the whole samples and sub-groups of IT sector or with larger market capital are with 99% significance levels. For pricing error, the market prices of the whole samples and the sub-groups classified by market capital had reflected public information enough. After waiving, the whole samples and the sub-groups of IT sector or with smaller market capital have significantly over reflected the public information.