Transparency and Information Asymmetry in Financial Markets

Daniel Bar Aharon critically explores the European Union's mounting regularity frameworks pertaining to transparency through mandated disclosure requirements within the purview of traditional investor protection regulation in financial markets. Traditionally, financial regulatory frameworks maintain a status quo assumption of "e;rational investors"e; contained within neoclassical economic theory; however, reoccurring financial incidents have exposed a critical flaw in this understanding, consequently requiring further examination of the interplay between behavioral finance and financial regulation.