ABSTRACT
In the free-market euphoria of the 1980s and 1990s, propelled by overseas savings overflowing the emerging American investor capitalism, and the information technology and digital media revolution that spurred an upswing in the economic growth in the mid-1990s, the free-market idea was gradually accepted as the new conventional wisdom. The two acts of 1999 and 2000 basically eliminated the regulatory control of the securities market and advanced derivatives and provided the finance industry with an historically unique ability to expand its basis globally. Bluhm and Wagner's define securities as financial assets that turns asset cash flows into marketable securities. Under favourable market conditions, derivatives such as securities enables the holder of illiquid, long-term contracts to develop a financial asset to be traded over the entire contract period. The acts of 1999 and 2000 was based on the premise that finance industry ultimately rest on self-regulatory mechanisms.
