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Securities Law Commons

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2008

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Articles 1 - 30 of 106

Full-Text Articles in Securities Law

Initial Public Offerings And The Failed Promise Of Disintermediation, A. Christine Hurt Dec 2008

Initial Public Offerings And The Failed Promise Of Disintermediation, A. Christine Hurt

Faculty Scholarship

No abstract provided.


Financial Services In The United States And United Kingdom: Comparative Approaches To Securities Regulation And Dispute Resolution, Cory Alpert Dec 2008

Financial Services In The United States And United Kingdom: Comparative Approaches To Securities Regulation And Dispute Resolution, Cory Alpert

Brigham Young University International Law & Management Review

No abstract provided.


Wherefore Art Thou Guidelines? An Empirical Study Of White-Collar Criminal Sentencing And How The Gall Decision Effectively Eliminated The Sentencing Guidelines, S. Patrick Morin Dec 2008

Wherefore Art Thou Guidelines? An Empirical Study Of White-Collar Criminal Sentencing And How The Gall Decision Effectively Eliminated The Sentencing Guidelines, S. Patrick Morin

The University of New Hampshire Law Review

[Excerpt] “Until the passage of the U.S. Federal Sentencing Guidelines in 1984, federal judges had relatively wide discretion in sentencing federal offenders up to the statutory maximum. This judicial discretion led to a disparity in the sentences of similarly situated offenders, particularly in white-collar cases. The Guidelines attempted to eliminate this disparity by establishing maximum and minimum sentences for certain offenses based on the characteristics of the crime. An important feature of the Guidelines system was its mandatory nature, which decreased and structured the judiciary‘s discretion within bounds set by Congress.

The mandatory application of the Guidelines resulted ...


Enforcing Dividend Withholding On Derivatives, Reuven S. Avi-Yonah Nov 2008

Enforcing Dividend Withholding On Derivatives, Reuven S. Avi-Yonah

Articles

The United States imposes a 30 percent withholding tax on dividends paid to nonresident aliens. However, this tax is rarely paid by portfolio investors because they can swap into U.S. securities, receiving payments to match both capital gain and dividends. Treasury has ruled that swap payments have an origin in the taxpayer’s residence so there is no withholding obligation on payments that match dividends. The proposal would impose withholding tax on dividend equivalents on the ground that there is no policy justification for a distinction between dividends, substitute dividends under securities lending transaction (which are treated as dividends ...


Erisa Misrepresentation And Nondisclosure Claims: Securities Litigation Under The Guise Of Erisa?, Clovis Trevino Bravo Oct 2008

Erisa Misrepresentation And Nondisclosure Claims: Securities Litigation Under The Guise Of Erisa?, Clovis Trevino Bravo

Georgetown Law Student Series

In the wake of recent corporate scandals and dramatic market downturns, many employees whose retirement savings plans were heavily invested in the stock of their employer have seen their account balances substantially depleted. To recover for their losses, plan participants have filed lawsuits under the Employee Retirement Income Security Act (ERISA) alleging that plan fiduciaries made misrepresentations or failed to disclose material information about the suitability of investing in the company stock. These suits are generally derivative or companion cases to securities class actions based on the same allegations of misrepresentations or nondisclosures. Even though there is a significant overlap ...


Embattled Ceos, Marcel Kahan, Edward B. Rock Oct 2008

Embattled Ceos, Marcel Kahan, Edward B. Rock

Faculty Scholarship at Penn Law

In this paper, we argue that chief executive officers of publicly-held corporations in the United States are losing power to their boards of directors and to their shareholders. This loss of power is recent (say, since 2000) and gradual, but nevertheless represents a significant move away from the imperial CEO who was surrounded by a hand-picked board and lethargic shareholders. After discussing the concept of power and its dimensions, we document the causes and symptoms of the decline in CEO power in several areas: share ownership composition and shareholder activism; governance rules and the board response to shareholder activism; regulatory ...


Securities Law—The Securities Exchange Act Of 1934—'Round And 'Round We Go: The Supreme Court Again Limits The Circumstances In Which Federal Courts May Hold Secondary Actors Liable Under Section 10(B) And Sec Rule 10b-5. Stoneridge Investment Partners, Llc V. Scientific-Atlanta, Inc., 128 S. Ct. 761 (2008)., W. Taylor Marshall Oct 2008

Securities Law—The Securities Exchange Act Of 1934—'Round And 'Round We Go: The Supreme Court Again Limits The Circumstances In Which Federal Courts May Hold Secondary Actors Liable Under Section 10(B) And Sec Rule 10b-5. Stoneridge Investment Partners, Llc V. Scientific-Atlanta, Inc., 128 S. Ct. 761 (2008)., W. Taylor Marshall

University of Arkansas at Little Rock Law Review

In Stoneridge Investment Partners, LLC v. Scientific-Atlanta, Inc., the Supreme Court addressed the plaintiffs' bar's most recent theory for recovery against secondary actors under section 10(b): "scheme liability." Rejecting the theory as beyond the scope of liability intended by Congress, the court sharply narrowed the circumstances under which courts may hold secondary actors liable under section 10(b) and SEC Rule 10b-5. Although Stoneridge clearly limits the circumstances in which federal courts may hold secondary actors liable under section 10(b) and SEC Rule 10b-5, lower federal courts have historically alleviated the harshness of the Supreme Court's ...


Should Securities Industry Self-Regulatory Organizations Be Considered Government Agencies?, Roberta S. Karmel Oct 2008

Should Securities Industry Self-Regulatory Organizations Be Considered Government Agencies?, Roberta S. Karmel

Faculty Scholarship

No abstract provided.


Securities Class Actions As Pragmatic Ex Post Regulation, Elizabeth Chamblee Burch Oct 2008

Securities Class Actions As Pragmatic Ex Post Regulation, Elizabeth Chamblee Burch

Scholarly Works

Securities class actions are on the chopping block-again. Traditional commentators continue to view class actions with suspicion; they see class suits as nonmeritorious byproducts of self-interest and the attorneys who bring them as rent-seekers. Their conventional approach has popularized securities class actions' negative effects. High-profile commissions capitalizing on this rhetoric, such as the Committee on Capital Markets Regulation, have recently recommended eliminating or severely curtailing securities class actions. But this approach misses the point: in the ongoing push and pull of securities regulation, corporations are winning the battle.

Thus, understanding the full picture and texture of securities class actions necessitates ...


Changing The Paradigm Of Stock Ownership From Concentrated Towards Dispersed Ownership? Evidence From Brazil And Consequences For Emerging Countries, Erica Gorga Sep 2008

Changing The Paradigm Of Stock Ownership From Concentrated Towards Dispersed Ownership? Evidence From Brazil And Consequences For Emerging Countries, Erica Gorga

Cornell Law Faculty Working Papers

This paper analyzes micro-level dynamics of changes in ownership structures. It investigates a unique event: changes in ownership patterns currently taking place in Brazil. It builds upon empirical evidence to advance theoretical understanding of how and why concentrated ownership structures can change towards dispersed ownership.

Commentators argue that the Brazilian capital markets are finally taking off. The number of listed companies and IPOs in the Sao Paulo Stock Exchange (Bovespa) has greatly increased. Firms are migrating to Bovespa’s special listing segments, which require higher standards of corporate governance. Companies have sold control in the market, and the stock market ...


Whole Foods, Unwholesome Practices: Will Sock Puppeteers Be Held Accountable For Pseudonymous Web Postings?, Chelsea Peters Sep 2008

Whole Foods, Unwholesome Practices: Will Sock Puppeteers Be Held Accountable For Pseudonymous Web Postings?, Chelsea Peters

Washington Journal of Law, Technology & Arts

The Federal Trade Commission recently exposed Whole Foods’ CEO John Mackey for having made pseudonymous posts on financial message boards for over seven years. Mackey’s practice of “sock puppeting,” or posting under a false identity to praise and build support for one’s company, is becoming more common among high-powered corporate executives who have few other outlets in which to vent their frustrations and spar with their critics. In July, the SEC began an informal investigation into Mackey’s posts. This article examines the liabilities sock puppeteers may face under current securities regulations, particularly § 10b-5 of the Securities Exchange ...


China, Business Law, And Finance -- Accession To The World Trade Organization, Joseph Vining Sep 2008

China, Business Law, And Finance -- Accession To The World Trade Organization, Joseph Vining

Law & Economics Working Papers Archive: 2003-2009

China's entry into the world economy will affect not just how we act but how we think. It will affect especially what "business," "business law," and "business corporation" come to mean both in a transnational setting and in American law. The nature of American business law today still stands in the way of a wholly profit-maximizing approach to law or the world in general. But there is strong pressure, consistent with a general tendency in Western thought, to make business and corporate decision-making entirely manipulative and calculating and to eliminate the force of human value from it. This Youde ...


Stockholders, Stakeholders, And Bagholders (Or How Investor Diversification Affects Fiduciary Duty), Richard A. Booth Marbury Research Professor Of Law Jul 2008

Stockholders, Stakeholders, And Bagholders (Or How Investor Diversification Affects Fiduciary Duty), Richard A. Booth Marbury Research Professor Of Law

Richard A Booth

The traditional wisdom is that management should serve the interests of the corporation and the stockholders who own it by maximizing stockholder wealth. But a significant number of legal scholars argue that management duty should be more broadly construed to include other constituencies ("stakeholders"), such as employees, creditors, customers, suppliers, and the community at large. The broader view of management duty means that management has more discretion and that stockholders will seldom have recourse if management fails to maximize profits. Nevertheless, many states have adopted so-called other constituency statutes permitting management to consider such other interests. The difference between the ...


The Direction Of Corporate Law: The Scholars' Perspective, John C. Coffee Jr., Richard A. Booth Marbury Research Professor Of Law, R. Franklin Balotti, David C. Mcbride, Edward P. Welch Jul 2008

The Direction Of Corporate Law: The Scholars' Perspective, John C. Coffee Jr., Richard A. Booth Marbury Research Professor Of Law, R. Franklin Balotti, David C. Mcbride, Edward P. Welch

Richard A Booth

Transcript of a panel on a scholar's approach to corporation law.


Securities Fraud, Recidivism, And Deterrence, Jayne W. Barnard Jul 2008

Securities Fraud, Recidivism, And Deterrence, Jayne W. Barnard

Faculty Publications

Legal scholars have expended considerable energy on the study of high-level securities fraud violators-Ken Lay, Bernie Ebbers, Dennis Kozlowski, etc. There has been little attention, however, to the perpetrators of "retail" securities fraud-the con artists who sell bogus stock over the Internet, orchestrate elaborate pump-and-dump schemes, and create a never-ending array of purportedly "risk free" investment opportunities. Collectively, and in a cruel mockery of capitalism, these offenders extract hundreds of millions dollars from investors each year. In this article, Professor Barnard examines this group of offenders, focusing particularly on those who recidivate-often moving from state to state and scheme to ...


The Us Subprime Mbs Crisis: New Legislative Agenda And Potential Ramifications For Foreign Jurisdictions, Yuliya Guseva Jun 2008

The Us Subprime Mbs Crisis: New Legislative Agenda And Potential Ramifications For Foreign Jurisdictions, Yuliya Guseva

Cornell Law School Inter-University Graduate Student Conference Papers

The recent US liquidity crisis, triggered by the failure of mortgage-related securities, produced long-lasting ramifications inside and outside of the US. International financial indicators and the housing markets demonstrate that the mortgage-related liquidity problems keep reverberating throughout the US and the global economy. In the US, even such giants as Freddie Mac and Fannie Mae, which were expected to inject market liquidity, have declared considerable losses from subprime MBS. The ongoing crisis provided a fertile ground for a number of publications and research. However, a range of fundamental issues regarding legislative responses to the US MBS crisis and its international ...


Tercer Congreso Nacional De Organismos Públicos Autónomos, Bruno L. Costantini García Jun 2008

Tercer Congreso Nacional De Organismos Públicos Autónomos, Bruno L. Costantini García

Bruno L. Costantini García

Tercer Congreso Nacional de Organismos Públicos Autónomos

"Autonomía, Reforma Legislativa y Gasto Público"


The Eu Challenge To The Sec, Roberta S. Karmel Jun 2008

The Eu Challenge To The Sec, Roberta S. Karmel

Faculty Scholarship

No abstract provided.


Agency Costs, Charitable Trusts, And Corporate Control: Evidence From Hershey's Kiss-Off, Jonathan Klick, Robert H. Sitkoff May 2008

Agency Costs, Charitable Trusts, And Corporate Control: Evidence From Hershey's Kiss-Off, Jonathan Klick, Robert H. Sitkoff

Faculty Scholarship at Penn Law

In July 2002 the trustees of the Milton Hershey School Trust announced a plan to diversify the Trust’s investment portfolio by selling the Trust’s controlling interest in the Hershey Company. The Company’s stock jumped from $62.50 to $78.30 on news of the proposed sale. But the Pennsylvania Attorney General, who was then running for governor, opposed the sale on the ground that it would harm the local community. Shortly after the Attorney General obtained a preliminary injunction, the trustees abandoned the sale and the Company’s stock dropped to $65.00. Using standard event study ...


Mere Thieves, Robert E. Steinbuch May 2008

Mere Thieves, Robert E. Steinbuch

Faculty Scholarship

No abstract provided.


Corporate Taxation And International Charter Competition, Mitchell Kane, Edward B. Rock May 2008

Corporate Taxation And International Charter Competition, Mitchell Kane, Edward B. Rock

Faculty Scholarship at Penn Law

Corporate Charter competition has become an increasingly international phenomenon. The thesis of this article is that this development in the corporate law requires a greater focus on the corporate tax law. We first demonstrate how a tax system’s capacity to distort the international charter market depends both upon its approach to determining corporate location and the extent to which it taxes foreign source corporate profits. We also show, however, that it is not possible to remove all distortions through modifications to the tax system alone. We present instead two alternative methods for preserving an international charter market. The first ...


Taking Certification Seriously – Why There Is No Such Thing As An Adequate Representative In A Securities Fraud Class Action, Richard A. Booth Apr 2008

Taking Certification Seriously – Why There Is No Such Thing As An Adequate Representative In A Securities Fraud Class Action, Richard A. Booth

Working Paper Series

Securities fraud class actions (SFCAs) arising under Rule 10b-5 are well established as a feature of the legal landscape, but they are a vestige of a largely outdated view of investor behavior and preferences. In the 1960s, most investors were undiversified stock pickers. Today, most investors hold stock through well diversified institutions. As a result, most investors are net losers from SFCAs. Moreover, it is arguable that it is irrational for most investors not to be diversified. A passive investor who fails to diversify assumes unnecessary risk for the same expected return that diversified investors enjoy. Given that federal securities ...


Five Decades Of Corporation Law - From Conglomeration To Equity Compensation, Richard A. Booth Apr 2008

Five Decades Of Corporation Law - From Conglomeration To Equity Compensation, Richard A. Booth

Working Paper Series

This brief essay recounts developments in corporation law over the last fifty years. It begins with the rise of finance capitalism and the conglomerate corporation which was followed by the emergence of hostile takeovers in the late 1970s and 1980s. One of the key events in this saga was the February 1, 1983 decision by the Delaware Supreme Court in Weinberger v. UOP, Inc. that effectively permitted the at-will elimination of minority stockholders through cashout mergers. Takeovers were also facilitated by two major financial developments: (1) the growth of institutional investors coupled with the growing taste of diversified investors for ...


The Uptick Rule Of Short Sale Regulation: Can It Alleviate Downward Price Pressure From Negative Earnings Shocks?, Lin (Lynn) Bai Apr 2008

The Uptick Rule Of Short Sale Regulation: Can It Alleviate Downward Price Pressure From Negative Earnings Shocks?, Lin (Lynn) Bai

Faculty Articles and Other Publications

This paper empirically examines the effect of the uptick rule (including the bid test applicable to NASDAQ stocks) of short sale regulations on stock prices and short selling activities immediately after negative earnings surprises that occurred during the period of May to November 2005. It compares price paths and short selling activities of stocks restricted by the uptick rule with stocks that were exempted from the rule as a result of the SEC's Pilot Program. The study has not found any evidence that prices of stocks subject to the rule declined at a slower speed than prices of exempted ...


Regulation By Exemption: The Changing Definition Of An Accredited Investor, Roberta S. Karmel Apr 2008

Regulation By Exemption: The Changing Definition Of An Accredited Investor, Roberta S. Karmel

Faculty Scholarship

No abstract provided.


Gatekeeper Failures: Why Important, What To Do, Merritt B. Fox Apr 2008

Gatekeeper Failures: Why Important, What To Do, Merritt B. Fox

Michigan Law Review

The United States was hit by a wave of corporate scandals that crested between late 2001 and the end of 2002. Some were traditional scandals involving insiders looting company assets - the most prominent being Tyco, HealthSouth, and Adelphia. But most were what might be called "financial scandals": attempts by an issuer to maximize the market price of its securities by creating misimpressions as to what its future cash flows were likely to be. Enron and WorldCom were the most spectacular examples of these financial scandals. In scores of additional cases, the companies involved and their executives were sued by the ...


Too Close For Comfort: The Potential Dilemma Facing The Securities And Exchange Commission And The Public Accounting Oversight Board, David H. Roberts Apr 2008

Too Close For Comfort: The Potential Dilemma Facing The Securities And Exchange Commission And The Public Accounting Oversight Board, David H. Roberts

Pace Law Review

No abstract provided.


Proxy Contests In An Era Of Increasing Shareholder Power: Forget Issuer Proxy Access And Focus On E-Proxy, Jeffrey N. Gordon Mar 2008

Proxy Contests In An Era Of Increasing Shareholder Power: Forget Issuer Proxy Access And Focus On E-Proxy, Jeffrey N. Gordon

Vanderbilt Law Review

The current debate over shareholder access to the issuer's proxy statement for the purpose of making director nominations is both overstated in its importance and misses the serious issue in question. The Securities and Exchange Commission's ("SEC's") new e- proxy rules, which permit reliance on proxy materials posted on a website, should substantially reduce the production and distribution cost differences between a meaningful contest waged via the issuer's proxy and a freestanding proxy solicitation. No matter which avenue is used, however, the serious question relates to the appropriate disclosure required of a shareholder nominator. Should the ...


The Lead Plaintiff Provisions Of The Pslra After A Decade, Or "Look What's Happened To My Baby", Elliott J. Weiss Mar 2008

The Lead Plaintiff Provisions Of The Pslra After A Decade, Or "Look What's Happened To My Baby", Elliott J. Weiss

Vanderbilt Law Review

In 1995, my colleague John Beckerman and I had an experience shared by very few legal academics. We mailed the galley proofs of an article that we had written to the staff of a Senate Committee and then saw the Committee, the Senate, and the full Congress enact into law a bill that included all of the recommendations in our article. The article was Let the Money Do the Monitoring: How Institutional Investors Can Reduce Agency Costs in Securities Class Actions; the law was the Private Securities Litigation Reform Act of 1995 ("PSLRA"). The relevant provisions of the PSLRA, now ...


There Are Plaintiffs And ... There Are Plaintiffs: An Empirical Analysis Of Securities Class Action Settlements, James D. Cox, Randall S. Thomas, Lynn Bai Mar 2008

There Are Plaintiffs And ... There Are Plaintiffs: An Empirical Analysis Of Securities Class Action Settlements, James D. Cox, Randall S. Thomas, Lynn Bai

Vanderbilt Law Review

Reform of the securities class action is once again the subject of national debate. The impetus for this debate is the reports of three different groups-the Committee on Capital Market Regulation,' the Commission on the Regulation of U.S. Capital Markets in the 21st Century, and McKinsey & Company.3 Each of the reports focuses on a single theme: how the contemporary regulatory culture places U.S. capital markets at a competitive disadvantage to foreign markets. While the reports target multiple regulatory forces in their calls for reform, each report singles out securities class actions as one of the prime villains ...