What's Wrong with Wall Street: Short-Term Gain and the Absentee Shareholder

Lowenstein, professor of Finance and Law at Columbia University, has written a thought-provoking analysis of our stock markets' recent performance. He argues that the frenzied turnover in trading stocks is endangering the stability of America's economy. He decries the creation of ""derived securities'' like stock index futures and the dangerous levels of debt used to finance growing numbers of hostile takeovers. His remedy is to involve shareholders in the management of the companies whose shares they hold. His most controversial proposal is the imposition of a ``100% tax on all gains . . . from the sale of stocks . . . held for less than one year'' as a way to encourage stockholder involvement. He also advocates requiring committed financing to cover entire takeover offers and shareholder approval of defensive tactics a target company's management might adopt. These and other proposals are sure to stir debate in the investment community. (April)