What specific new regulations-would be most effective

Reference no: EM13190693

"Easy access to the capital markets by businesses organized as corporations helps make the corporation popular. However, the corporation also concentrates temptation, since very large sums of 'the other guys' money' are involved. Prosecution of securities law violations during the last few years has revealed many episodes of complete abandonment by CEOs, CFOs, and other corporate officers of their duty of care toward shareholders. Public revulsion and harm to many individuals who trusted their brokers and the claims of company managers between 1999 and 2001 have led to unprecedented numbers of class action lawsuits against corporate officers and record civil damage awards to shareholders.

These damage awards typically amount to only a tiny fraction of the money lost by an individual investor who joins such a lawsuit. The remedy usually doesn't match the injury. Could more extensive government regulation have prevented the major corporate frauds and terrible personal retirement investment losses of the last five years? Or, is risk of such episodes of corporate fraud simply part of the price we pay in exchange for the benefits of a free-market system?

What specific new regulations, if any, would be most effective?

(Answer one or two pages)

Reference no: EM13190693

Questions Cloud

Define what is the concentration of the naoh solution : NaOH solution were necessary to reach the equivalence point, what is the concentration of the NaOH solution? (Make sure to report the correct number of significant figures?

Increasing the price of cell phones : A limited liability company is the best form of business for owners who or in a specific industry, two dominant firms work together to set prices.What we call this

Specific individual influence on the times : Identify one person from 1945 to 1974 who you believe had a significant impact on the years. This could include a president who introduced important policies that changed the country, a social activist who inspired reform or someone else who had an i..

Determine the pauls production possibility frontier : Paul can make either "100 bottles of wine and 0 boxes of chocolates" or "0 bottles of wine and 1600 boxes of chocolates" or a combination of wine and chocolates. For parts of this question assume that Paul's PPF reflects the property of constant o..

What specific new regulations-would be most effective : Easy access to the capital markets by businesses organized as corporations helps make the corporation popular. However, the corporation also concentrates temptation, since very large sums of 'the other guys' money' are involved.

Find the mrts-mpl and mpk : find out the MRTS of the following questions for a. q=L^0.5K^0.5, b. q=L^0.5+K^0.5, c. q= min {K,L} and d. q=L+K. I think for the first two I have the correct answers and just need to make sure I didn't do the math incorrectly.

House and the senate coordinate two versions of same bill : When the House and the Senate coordinate two versions of the same bill, they often use a _________ to obtain a single unified bill.

Write paper describing xml and json : Write two page paper describing XML and JSON. What are they? Why do we need them? Are there certain applications that favor one of the these over the other? Explain. What is SOAP?

Data security and dealing with workplace bullying : Dealing with Workplace Bullying and Data Security

User Account

All Pages