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Selling Hope, Selling Risk - Corporations, Wall Street, and the Dilemmas of Investor Protection (Hardcover)
Loot Price: R1,073
Discovery Miles 10 730
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Selling Hope, Selling Risk - Corporations, Wall Street, and the Dilemmas of Investor Protection (Hardcover)
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In the midst of globalization, technological change and economic
anxiety, we have deep doubts about how well that task of investor
protection is being performed. In the U.S., the focus is on the
Securities & Exchange Commission. Part of the explanation is
economic and political: the failure to know the right balance
between investor protection and capital formation, and the
resulting battle among interest groups over their preferred
solutions. This book's main claim, however, is that regulation is
also frustrated at nearly every turn by human nature, as exhibited
both on the buy-side (investors) and sell-side (corporate
executives, bankers, stockbrokers). There is plenty of savvy and
guile, but also ample hope, fear, ego, overconfidence, social
contagion and the like that persistently filter and distort the
messages regulators try to send. This book is the first sustained
effort to link the key initiatives of securities regulation with
our burgeoning awareness in the social sciences of how people and
organizations really behave in economic settings. It examines why
corporate fraud occurs and how best to deter it and compensate its
victims; the search for an edge via insider trading; the disclosure
apparatus and its gatekeepers; sales efforts and manipulation in
Ponzi schemes, internet scams, private offerings and crowdfunding;
and how this all helps explain the recent global financial crisis.
It ends by turning these insights back on the task of regulation
itself, and the strategies (and frustrations) of making regulation
work in a financial world that is at once increasingly
sophisticated yet deeply human and incurably flawed.
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