Two public/private divides revisited

A central feature of securities markets in the United States is the public/private divide. In fact, federal law creates two different public/private divides—one for companies and another for investment funds. While Congress created both divides in the space of a single decade, it could not have imagined how they might come to influence each other. In 1940, when federal fund regulation was created, individuals directly held the vast majority of stock, and investment funds held only a trivial percentage.

• Gabriel Rauterberg
• Securities markets
• Financial Regulation
• federal fund regulation
• investment funds
• Securities Regulation