Q. 1. These damage awards typically amount to only a tiny fraction of the money lost by an individual investor who joins such a lawsuit. The remedy usually doesn’t match the injury. Could more extensive government regulation have prevented the major corporate frauds and terrible personal retirement investment losses of the last five years? Or, is risk of such episodes of corporate fraud simply part of the price we pay in exchange for the benefits of a free-market system? Illustrate what specific new regulations, if any, would be most effective?

2. These damage awards typically amount to only a tiny fraction of the money lost by an individual investor who joins such a lawsuit. The remedy usually doesn’t match the injury. Could more extensive government regulation have prevented the major corporate frauds and terrible personal retirement investment losses of the last five years? Or, is risk of such episodes of corporate fraud simply part of the price we pay in exchange for the benefits of a free-market system? Illustrate what specific new regulations, if any, would be most effective?