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Full-Text Articles in Securities Law

Hedge Fund Regulation: The Amended Investment Advisers Act Does Not Protect Investors From The Problems Created By Hedge Funds, Sean M. Donahue Jan 2007

Hedge Fund Regulation: The Amended Investment Advisers Act Does Not Protect Investors From The Problems Created By Hedge Funds, Sean M. Donahue

Cleveland State Law Review

Hedge funds are a viable investment alternative for financially sophisticated investors. However, because traditional hedge funds and funds of funds are unsuitable for average investors, these investors should be restricted from making such investments. Regardless of who invests in hedge funds, advisers of these entities must be regulated to assure that they do not commit fraud. In addition to monitoring advisers, the SEC must limit hedge funds' use of leverage to assure that market collapse does not occur. Part II of this Note describes the history and development of hedge funds. Part III illustrates the current problems facing the hedge …


Insider Trading Rules Can Affect Attractiveness Of Country's Stock Markets, Laura Nyantung Beny Jan 2007

Insider Trading Rules Can Affect Attractiveness Of Country's Stock Markets, Laura Nyantung Beny

Articles

The academic debate about the desirability of prohibiting insider trading is longstanding and as yet unresolved. Until Henry Manne’s 1966 book, Insider Trading and the Stock Market, the debate centered on whether insider trading is unfair to public investors who are not privy to private corporate information. However, the fairness approach is malleable and indeterminate and thus does not lend itself to clear-cut policy prescriptions. Since Manne’s book, the focus of the debate has been on the effect of insider trading on economic efficiency. Manne argued that, contrary to the prevailing legal and moral opinion of the time, insider trading …