Defining the Issues

  • Kim M. Willey


This chapter provides an examination of the term ‘short-termism’ and its narrower application to stock market investing. Terms relevant to the definition of stock market short-termism are also considered including ‘stock market’, ‘listed company’, ‘equity security’, and the ‘equity ownership chain’. Key components of the equity ownership chain—asset owners, intermediaries and company managers—and their relationship to short-termism, are analyzed. As the focus of this book is on regulatory reforms, the difference between ‘hard’ and ‘soft’ law and is examined. The concept of ‘light’ touch regulation is also presented as it forms the basis for the recommendation in Chapter 8 that a ‘light’ touch approach is the optimal approach to ‘nudge’ capital markets away from their current short-termism focus.


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Copyright information

© The Author(s) 2019

Authors and Affiliations

  • Kim M. Willey
    • 1
  1. 1.Faculty of LawUniversity of VictoriaVictoriaCanada

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