The Decline in Lawyer Independence: Lawyer Equity Investments in Clients
The University of Texas School of Law, Public Law and Legal Theory Research Paper Series Number 490
147 Pages Posted: 16 Jun 2013
Date Written: 2002
During the last twenty years, there has been significant innovation in the financial markets and the economy. We have witnessed the emergence of an increasingly integrated global economy, several waves of mergers and acquisitions, and the rise and fall of the dot-com initial public offerings (IPOs). These developments have largely taken place during a "bull market" in the United States, which lasted until early 2000. This bull market was credited with the creation of a tremendous increase in wealth, largely in the form of corporate equity appreciation, a significant part of which has been lost due to the downturn in the stock market since the spring of 2000. Some market efficiency theorists have attributed the growth to a "new" economy based upon innovation in technology and the provision of services in contrast to an "old" economy based upon traditional manufacturing activity and the sale of products. By contrast, critics have argued that this wealth creation was largely an overvaluation caused by inefficiency in the regulation of financial markets and an oversupply of capital from baby boomer investors.
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