Economic Foundations of Stock Market Regulation
Before considering the economic impact of stock regulation in the United States, which has pioneered in this area, it is desirable to review briefly the general purposes of such regulation. The two basic aims of the original legislation — the Securities Act of 1933 and the Securities and Exchange Act of 1934 — were protection of investors and promotion of the broader public interest as this interest is affected by trading in securities. The first aim has a fairness orientation and the second an economic orientation, since the public interest in the area of securities regulation relates largely to the impact of regulation on the economic performance of securities markets.
KeywordsMarket Efficiency Security Market Security Regulation Full Disclosure Outstanding Issue
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