Law Commons^™

The Fragile Armistice: The Legal, Economic, And Policy Implications Of Trading In A Competitor's Stock, Karl T. Muth

Karl T Muth

This paper examines the legal and other implications when a corporation elects to use corporate treasury resources to trade in a competitor's stock, with a primary focus on short-selling of a direct competitor's stock and the reaction of markets, media, and stakeholders to this activity, as well as a discussion of the practice's relative rarity. Included are brief discussions of the history of securities law around short-selling, the legal landscape internationally, and the timeliness of this particular issue in the context of the market conditions of Q3/Q4-2008.