Changing the Rules of the Game: Beyond a Disclosure Framework for Securities Regulation

37 Pages Posted: 8 Apr 2019

See all articles by Jena Martin

Jena Martin

West Virginia University - College of Law

Date Written: 2015

Abstract

A disclosure -based framework is at the heart of U.S. securities regulation. This paper examines this model’s emphasis on disclosure and discuss why it is inherently flawed. Specifically, the disclosure model is outdated and does not seem to reflect the current trading patterns that dominate the United States’ securities market. Instead, this paper argues that what is required is a radical response to the current trading patterns of American consumers in the securities markets - one that establishes a regulatory framework that examines the trading market as a whole instead of focusing on the disclosures of public companies. This would offer better protection against the problems that led to corporate scandals and crises in the market, including the 2008 recession.

Keywords: Securities and Exchange Commission, SEC, securities market, regulation, disclosure paradigm, disclosure model, financial disclosure, investor paradigm, consumer paradigm, regulatory models

JEL Classification: K1, K2, K22

Suggested Citation

Martin, Jena, Changing the Rules of the Game: Beyond a Disclosure Framework for Securities Regulation (2015). WVU College of Law Research Paper, No. 2019-011, West Virginia Law Review, Vol. 118, No. 1, 2015, Available at SSRN: https://ssrn.com/abstract=3364995

Jena Martin (Contact Author)

West Virginia University - College of Law ( email )

101 Law School Drive
Morgantown, WV West Virginia 26506
United States

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