This paper surveys some of the prevalent theories of stock market regulation (market failure and public choice.) The validity of generalizing U.S. regulatory experience to the markets of other nations depends on which, if any, of these popular theories holds. No convincing evidence exists to...

The first part of this paper derives the Market Pricing Maxim (MPM): market transaction prices fully reflect available information. This is not the same as the efficient market hypothesis (EMH). The MPM holds whether prices are unbiased estimates of fundamental value, as the EMH hypothesizes, or...

Price adjustment delays occur between in-the-money convertible preferred stock prices and common stock prices. Convertible preferred prices systematically deviate from the prices predicted from their conversion relations with common stocks. The price predictability stems from price changes in...

Insider transactions are not random across growth and value stocks. We find that insider buying climbs as stocks change from growth to value categories. Insider buying is also greater after lower stock returns, and lower after high stock returns. These findings are consistent with a version of...