Linking the Securities Market Structure and Capital Formation: Incentives for Market Makers?

University of Pennsylvania Journal of Business Law, Vol. 16, No. 1, pp. 1-55, 2013

55 Pages Posted: 3 Nov 2012 Last revised: 11 Mar 2014

Date Written: February 20, 2014

Abstract

This Article analyzes various incentives for market makers as a potential regulatory tool to address the interrelated crises in capital formation and market making in smaller-cap stocks. While considering the nature and development of the market making crisis and its impact on capital formation, such approaches as incentives for market makers conferring advantages in the trading process itself and issuer-to-market maker compensation arrangements are evaluated. The Article also addresses the significance of the integrated model of market making.


Keywords: market makers, capital formation, incentives, compensation arrangements

JEL Classification: D62, G18, G24, K22

Suggested Citation

Dolgopolov, Stanislav, Linking the Securities Market Structure and Capital Formation: Incentives for Market Makers? (February 20, 2014). University of Pennsylvania Journal of Business Law, Vol. 16, No. 1, pp. 1-55, 2013, Available at SSRN: https://ssrn.com/abstract=2169601 or http://dx.doi.org/10.2139/ssrn.2169601

Stanislav Dolgopolov (Contact Author)

Decimus Capital Markets, LLC ( email )

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