THE INFLUENCE OF SECURITIES REGULATION UPON STANDARDS OF CORPORATION FINANCING

Authors

Forrest B. Ashby, Wharton School, University of Pennsylvania

Abstract

During the first years of the present century both promotional and manipulative swindling in connection with stocks and bonds flourished in the face of the obsolescent and poorly enforced fraud laws which were administered by prosecutors and courts inexperienced in corporate finance. It was not until 1911, after the securities problem had been put squarely before it by the state banking commissioner, that the Kansas legislature passed the first blue sky law to check the issuance and sale of unsound corporate obligations. Since 1911 the development of securities legislation has proceeded until at the present time forty-six states have statutes which directly regulate the issue and sale of corporate stocks, bonds and similar obligations.

Recommended Citation

Forrest B. Ashby, THE INFLUENCE OF SECURITIES REGULATION UPON STANDARDS OF CORPORATION FINANCING, 26 Mich. L. Rev. 880 (1928).
Available at: https://repository.law.umich.edu/mlr/vol26/iss8/4