Regulation of Manipulation Under Section 10(b): Securities Prices and the Text of the Securities Exchange Act of 1934

Friday, January 1st, 1988 at 12:00 am by Steve Thel
Steve Thel, Regulation of Manipulation Under Section 10(b): Securities Prices and the Text of the Securities Exchange Act of 1934, 1988 Colum. Bus. L. Rev. 359

This article is about the meaning of the word ‘manipulative’ in section 10(b). It concludes that the term must be given independent interpretive significance as part of a broader re-discovery of the original and most logical agenda for the statute—that of ensuring that securities are in a certain sense appropriately priced. This is a more far-reaching goal than the one the Court ascribes to the Act, which is essentially only the institution of a system of disclosure of corporate earnings and profits. If the statute is correctly understood in this way, the authority granted to the SEC by section 10(b) is seen as extending to contemporary practices as diverse as program trading, arbitrage, poison pills, stock-parking, and corporate abuses of control over dividend policy.

Author Information

Associate Professor, Fordham University School of Law. B.A., 1976, North Texas State; J.D., 1979, Harvard.