This course, a joint offering of the Law School and the Business School,
concerns the regulation of capital markets: The Exchanges and the
variety of other institutions devoted to the trading of securities.
Secondary trading markets perform three important social functions. They
provide liquidity for investors, allow more efficient allocation of
risk, and incorporate information into prices (which in turn serve as
vital guides to real economic activity). The reliability and
effectiveness with which capital markets perform these functions and
their costs of operation are determined in significant part by the rules
governing the persons who operate, and trade in, these markets.
The course will begin with a consideration of major domestic and
transnational capital market institutions. It will then address the
economic theory that explains how capital markets operate and the
incentives that motivate their various players. These beginning segments
lay the groundwork for a more informed discussion of the substantive
law that governs capital markets.
The course, with its focus on persons who operate or trade in capital markets, should be distinguished from Securities Regulation, which is devoted primarily to the regulation of the behavior of issuers and their agents in connection with the primary offering and secondary trading of their securities.
S. Sloan Colt Professor of Banking and International Finance
Lawrence R. Glosten is the S. Sloan Colt Professor of Banking and International Finance at Columbia Business School. He is also co-director (with Merritt Fox and Ed Greene) of the Program in the Law and Economics of Capital Markets at Columbia Law School and Columbia Business School and is an adjunct faculty member at the Law School. He has been at Columbia since 1989, before...