Reforming U.S. Capital Markets to Promote Economic Growth

Abstract

Vibrant and well-functioning U.S. capital markets create jobs, bolster investment, promote innovation, and enhance retirement savings. Capital markets function best when regulations allow for the efficient allocation of capital while protecting investors. In this report, we evaluate major trends and developments in U.S. capital markets and assess whether existing regulations are continuing to serve U.S. companies and investors. We then set forth regulatory reforms to further enhance the performance of U.S. capital markets.

The report consists of four chapters:

(1) The Rise of Dual Class Shares: Regulations and Implications,

(2) Short-termism, Shareholder Activism and Stock Buybacks;

(3) The Rise of Index In-vesting: Price Efficiency and Financial Stability; and

(4) An Analysis of Investment Stewardship: Mutual Funds and ETFs.