Two classes of culprits contributed to the recent corporate scandals but have not been touched by the scandals or even mentioned in connection with misdoings. One group is us, the financial analysts; the other is the independent directors who are elected and paid by shareholders to represent the...

Two old friends ruminate about insider trading. Treynor points out that the purposes of the U.S. insider trading laws are (1) to protect dealers and (2) to give investors the feeling that they are protected from people who know more than they do. He concludes that insider trading laws probably...