Reference no: EM133190236

1. How is this law promoting market efficiency (the informativeness of the stock price) and the fair treatment of investors?

Regulation FD (Fair Disclosure) states that when a publicly-traded company or issuer of stock discloses any material nonpublic information regarding that issuer or its securities to a limited group of individuals, the issuer must also make public disclosure of that information. Under Reg FD, companies that conduct earnings and forecast calls to update stock analysts must simultaneously issue a press release to make that information available to the general public. (see above questions)

2. What is the primary objective of antitrust regulation? How is that objective related to economic welfare?

3. Calculate the value of the index in a hypothetical industry with ten players (each with equal market share). How does the index change if four of the ten players merge to form a single company?

The Herfindahl-Hirschman index measures industry concentration by summing the shares of market shares of industry participants ( see above Questions)

4. Cite one reason why the long-term impact of a proposed acquisition on consumer welfare is more difficult to evaluate than the impact on competition.

The primary objective of antitrust regulation is the protection of competition. The Bork doctrine changed this orientation by claiming that the protection of competition is a less important consideration for antitrust action than consumer welfare ( see above Questions)

5) Why does it matter for consumer welfare whether competition is evaluated on the local/regional or national level?