Conclusion  

My recommendation as a result of my research is a combination of two of the policy alternatives described previously. The first is the implication of trading halts in the stock market. The second is extending the time that market makers have to post prices before an initial public offering begins trading. These would both be the responsibility of the Securities and Exchange Commission.

These two policies will solve many of the problems with slowdowns, and they will probably keep people from losing too much money. It won't do anything to solve the problems of false advertising, but I feel that that problem will go away on its own in time.

I believe in this solution because it is not very invasive, not very costly, and it will solve two of the problems directly. It also represents two issues which have been brought up by the Securities and Exchange Commission and a Nasdaq committee. The brokerage firms probably won't have a problem with this, and investors will like it, but the day trading firms will complain. Perhaps there will be more problems in the future, but at least this will be a stepping stone to the further regulation which someday may be called for. BACK TO POLICY ALTERNATIVES | BACK TO OUTLINE

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This page was last revised on March 7, 1999 by Ben Cipiti. Please send comments on, or suggestions for, this web page to bc912196@oak.cats.ohiou.edu