| Description |
The Utah Securities Division has recently promulgated new policy with respect to regulation in the securities market. The Division has adopted two new rules in the last three years that essentially eliminate the existence of blank check public offerings. These regulations were adopted with the intention of requiring more disclosure of the business plans and provide closer surveillance of blank check companies in order to protect the investors. Both of these provisions tightened the regulatory process. This tightening of regulation has been viewed differently by individuals on opposing sides of the issue. In order to evaluate the necessity and effectiveness o this regulation, this study examines the history of securities regulation in the United States and specifically in Utah, the development of regulation in the blank check public offering market within the state of Utah, the basic characteristics of blank check public offerings, the rate of success or failure in the blank check offering market in Utah, using data from 1985 and 1986, the probability of projecting the success of blank check public offerings by evaluating the information contained in the prospectuses from 1985 and 1986, the economic impact that blank check offerings have an Utah's market, and the political implications and processes that affect formation, application, and implementation of blank check offering regulation. this study provides an isolated view of the interrelationship between the public and private sectors in the formation of public policy. In other words, this paper contains a case study of the political economy that demonstrates how politics and economics interplay in the formation of regulatory policy. |
