The stock pools and the Securities Exchange Act1I thank two anonymous referees, the editor, William Schwert, and George Benston, Mary Anne Case, Robert Conroy, Mike Dooley, Stuart Gilson, Bruce Johnsen, Ed Kitch, Julia Mahoney, Ed McCafferey, Roberta Romano, Jeff Strnad, Steve Thel, Mark Weinstein, and workshop participants at the University of Virginia School of Law, the University of Southern California Law School, Stanford Law School, New York University Law School, and the American Law and Economics Association for helpful comments and discussion. The University of Virginia Bankard Fund for Political Economy provided financial assistance.1