The consequences of even a modest decrease in a business’s stock price have become so dire that some executives would rather damage their corporation’s long-term health than allow quarterly returns to fall below projections. How did this situation come about? Lawrence E. Mitchell shows that the tipping point came in the first years of the 20th century. He explores the legal, financial, economic, and social transformations that led to the birth of the giant modern corporation and how this in turn spurred the rise of the stock market. Mitchell identifies what made traditionally cautious Americans become eager stock speculators, and why the federal government’s attempts to regulate finance completely missed the mark. By the dawn of the 1920s, the stock market had left behind its business origins to become the very reason for the creation of business itself.
About the Author
Lawrence E. Mitchell is Theodore Rinehart Professor of Business Law at The George Washington University Law School. After practicing corporate law for several years in New York, he entered academia and has been a leading corporate and business law scholar for twenty years. One of the founders of the progressive corporate law movement, named after his 1995 edited collection, Progressive Corporate Law, Mitchell has written extensively on a variety of topics ranging from corporate governance and the stock market to the history of anti-Semitism in the New York bar. His books include Stacked Deck: A Story of Selfishness in America and Corporate Irresponsibility: America’s Newest Export, as well as casebooks on corporate law and corporate finance. At George Washington, Mitchell created the Sloan Program for the Study of Business in Society to support multidisciplinary research in corporate law, and the Institute for International Corporate Governance and Accountability to explore a range of issues arising from globalizing capitalism. He is a sought-after speaker in academic and nonacademic settings, and a frequent commentator in the news media. Mitchell holds a B.A. from Williams College and a J.D. from Columbia Law School.
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