For example, assets that have a high return in high volatility have equity investor protection (Flavin et la., 2014). In contrast, equity investors are more unwilling to use shorter dated bonds (Flavin et la., 2014). Table 1 shows an example of five ratios for equity investors’ ratios.
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“This act is basically irrelevant. Everything defaults to state law now,” said Anthony Cabot, the company’s outside legal counsel, referring to the federal law that the industry has long cited for justifying its existence. “If it’s not in violation of state law, then there’s no violation of the federal act.