> > But what happens in an unregulated environment when > > the unregulated non-regulators pass away? > > The answer is "we don't know." The solution is to > keep applying the Davidson reputation test.
The problem with this Davidson test is that it only says something about the past trustworthiness of the past management. It gives no any guarantee for tomorrow. By the time your test starts ringing bells it will probably be too late to get out, because this is a very illiquid stock with only 400 shares trading. The moment some clear warning sign would appear, you will see lots of sell orders but no takers, and there is also no market maker here. The stock market (self) regulation is just an attempt to guarantee reasonable honest management in the future. It is not fool proof for sure, but it works better than nothing. But what do you want? Even more regulation to make it fool proof? btw,the CEO of Worldcom just landed behind bars for a 7 year sentence or something. The books of Enron showed clear cut 'gymnastics' to keep the thing in balance, more than a year before the collapse. Plenty of 'make-up'... But if people negate such things, they needn't blame Wall Street. Would public investors have fared better if Enron shares had been 'TGC style'? Definitely not. Danny --- You are currently subscribed to e-gold-list as: [EMAIL PROTECTED] To unsubscribe send a blank email to [EMAIL PROTECTED] Use e-gold's Secure Randomized Keyboard (SRK) when accessing your e-gold account(s) via the web and shopping cart interfaces to help thwart keystroke loggers and common viruses.
