I just finished reading a 144-page document from the Committee of European on ways to prevent market abuse.
The paper discusses myriad ways regulators can browbeat listed companies into following disclosure rules. Basically, it's 144 pages on how to force people to tell the truth.
Here's the ultimate truth on market regulation. It can't be done.
We have insider-trading rules that require company officials to report their personal buying of stock in the companies they own and run. We want to know if the CEO is driving the stock up, or blowing out his holdings ahead of bad news.
This is good in theory. Except that sophisticated company managers simply set up offshore accounts and run up or blow out of their companies without their name ever appearing. This happens all the time.
Full article at: Market Abuse
