Human Factor Decay and the Failure of Regulatory Responses to Unethical Business Practices

With the end of World War I and the prosperity that followed, the securities industry saw a large increase in the number of investors participating in the stock market. During the 1920s, approximately 20 million people became shareholders, expecting the amassing of more wealth with little or no consideration of the risk of potential loss. But of the $50 billion in securities that was amassed during this time, approximately half disappeared during the stock market crash of 1929 (www.sec.gov/...