Securities Regulation
Intermediate
Information Traders
Market participants who invest in gathering, verifying, and trading on information about securities values, including analysts, institutional investors, arbitrageurs, and other informed traders.
Why It Matters
The information-trader account explains securities regulation as a system that lowers information-production and verification costs while protecting incentives to generate price-relevant information.
Selected Literature
A short list of directly relevant archive entries.
1970
Introductory
1980
Introductory
On the Impossibility of Informationally Efficient Markets
Sanford J. Grossman and Joseph E. Stiglitz
American Economic Review
1984
Advanced
2018
Advanced
Stock Market Manipulation and Its Regulation
Merritt B. Fox, Lawrence R. Glosten, and Gabriel V. Rauterberg
Yale Journal on Regulation
Related Cases
1946
Securities Regulation
SEC v. W.J. Howey Co.
328 U.S. 293 (1946)
Definition of an investment contract under the federal securities laws.
1953
Securities Regulation
SEC v. Ralston Purina Co.
346 U.S. 119 (1953)
Whether an issuer's unregistered stock offers to employees qualified as transactions not involving a public offering.
1963
Securities Regulation
SEC v. Capital Gains Research Bureau, Inc.
375 U.S. 180 (1963)
Whether an investment adviser's undisclosed practice of trading before and after its recommendations could be enjoined under the Investment Advisers Act.
1968
Securities Regulation
SEC v. Texas Gulf Sulphur Co.
401 F.2d 833 (2d Cir. 1968) (en banc)
Trading while in possession of material nonpublic information and the accuracy of corporate statements about a major mineral discovery.