posted by Kaimipono D. Wenger
Basic v. Levinson clearly sets out the theoretical justification for the fraud on the market theory:
The fraud on the market theory is based on the hypothesis that, in an open and developed securities market, the price of a company’s stock is determined by the available material information regarding the company and its business. . . .
Of late, it’s not so easy to tell this to my law students with a straight face. Read the rest of this post »