A Good Cop for Europe's Bourses Nina Brink ought never to forget that this is the Information Age. Europe's stock markets need a good cop. And there's no time like now. Europe's share-owning culture is still shallow and can't easily absorb shocks triggered by stock scandals. A crisis of confidence would make it hard to sell the idea that savings should be put into equities.
Listing requirements are a particular concern.
Clear, timely information about management shareholdings must be available, and underwriters must insist that managers ''lock up'' their shares for at least six months. Amsterdam's exchange was right to drop its rule that companies report three years of profit before they list. But channeling funds to high-risk ventures is no reason to let regulators or startups cut corners. And Baystar, the prospectus revealed, did not agree to lock up its shares. Sure enough, Baystar sold more than a million shares of World Online in the first three days of trading.