Why both insider trading and non-mandatory disclosures should be prohibited
Article Abstract:
Government regulation of business, such as laws against insider trading and non-mandatory disclosures, are necessary and socially beneficial. Public corporations do not have as much incentive to regulate as much as diversified firms due to the composition of stockholders. The US initiated a reform movement prohibiting insider trading in the 1960s which eventually led to existing laws on such transactions. The change of the dominant market force from corporate entrepreneurs to diversified stockholders is acknowledged for the development in regulations.
Publication Name: Managerial & Decision Economics
Subject: Economics
ISSN: 0143-6570
Year: 1997
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Protection of minority interest and the development of security markets
Article Abstract:
The progress in security markets relies on proper regulation and government intervention in order to protect interests of both foreign investors and minority investors. However, a balance must be struck in creating policy to ensure neither excessive nor insufficient legal rules, which are both seen to be destructive to business. Countries with efficient investor protection and self-regulation, such as London and Hong Kong, are shown to have developed securities markets.
Publication Name: Managerial & Decision Economics
Subject: Economics
ISSN: 0143-6570
Year: 1997
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