Price Fraud

Abstract:     
This article analyzes the novel securities fraud theory of “price fraud.” Under this theory, an issuer and an underwriter are potentially subject to securities fraud liability for knowingly setting the offering price of securities at a level that is not rationally related to the securities’ fundamental value. The potential for price fraud liability could help prevent the next investment bubble from forming – averting future financial crises.

Number of Pages in PDF File: 79

Keywords: Securities Fraud, Securities Pricing, Financial Crisis, Bubble

Accepted Paper Series