Strengthening Brazil's Securities Markets

27 Pages Posted: 29 Nov 2000

Date Written: October 2000


An important challenge for all economies, at which only a few have succeeded, is creating the preconditions for a strong market for common stocks and other securities. A strong securities market rests on a complex network of legal and market institutions that ensure that minority shareholders (i) receive good information about the value of a company's business, and (ii) have confidence that a company's managers and controlling shareholders won't cheat them out of most or all of the value of their investment. This short paper summarizes this theory (which I develop in a separate paper on The Legal and Institutional Preconditions for Strong Securities Markets), and discusses the strengths and weaknesses of Brazil's institutions along these two dimensions. My goal is to offer a tentative roadmap for future reform of Brazilian institutions.

Suggested Citation

Black, Bernard S., Strengthening Brazil's Securities Markets (October 2000). Available at SSRN: or

Bernard S. Black (Contact Author)

Northwestern University - Pritzker School of Law ( email )

375 E. Chicago Ave
Chicago, IL 60611
United States
312-503-2784 (Phone)

Northwestern University - Kellogg School of Management

2001 Sheridan Road
Evanston, IL 60208
United States
847-491-5049 (Phone)

European Corporate Governance Institute (ECGI)


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