Chapter 8: What is the purpose of securities regulation?

Document Type

Book Chapter

Publication Date

2023

ISBN

9781782547457

Publisher

Edward Elger Publishing

Language

en-US

Abstract

Securities regulation creates a system of mandatory disclosure policed by anti-fraud provisions. The goals and purposes of this system are a source of ongoing debate. This chapter reviews the most prominent of these competing and complementary goals, from investor protection, to promoting market efficiency and capital formation, to monitoring corporate governance. It also delves into the definition of "reasonable investors" and explores which investors the law ought to protect. The chapter is aimed at law students and those with a legal or financial  background who want to learn more about securities law.

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