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The Final Step To Insider Trading Reform: Answering The "It's Just Not Right!" Objection, John P. Anderson
The Final Step To Insider Trading Reform: Answering The "It's Just Not Right!" Objection, John P. Anderson
Journal Articles
This Article proceeds as follows: Section I sets the table by dismissing the notion that economic analysis of law should enjoy some privileged status (as more precise, rigorous, or scientific) over ethical analysis of law. Rather, it is suggested that economic and ethical reasons are best understood as different tools suited for different roles in legal reform. It is then argued that, given the current climate, ethical reasoning is the best tool for overcoming the remaining obstacles to insider trading reform in the United States. Section II begins the ethical analysis by arguing that even if it were admitted that …
Solving The Paradox Of Insider Trading Compliance, John P. Anderson
Solving The Paradox Of Insider Trading Compliance, John P. Anderson
Journal Articles
Regulators demand the impossible when they require issuers to design and implement effective insider trading compliance programs because insider trading is a crime that neither Congress nor the Securities Exchange Commission has defined with any specificity. This problem of uncertainty is then compounded by the threat of heavy civil and criminal sanctions for violations. Placed between this rock and hard place, issuers tend to adopt overbroad insider trading compliance programs, which comes at a heavy price in terms of corporate culture, cost of compensation, share liquidity, and cost of capital. The irony is that, since all of these costs are …