Mutual Fund Share Classes and Conflicts of Interest between Brokers and Investors
By: Edward O'Neal (Dec 2003)
Dr. O'Neal describes the various mutual fund share classes and explains how differences in commissions to brokers and costs to investors across share classes can create conflicts of interests.
Churning - Revisited: Trading Cost and Control
By: Craig McCann and Dengpan Luo (Sep 2003)
Published in the Securities Arbitration 2003 Handbook PLI.
In a previous paper, Dr. McCann outlined the portfolio approach to assessing the excessiveness of trading in churning cases. In this paper, Dr. McCann and Dr. Luo demonstrate that cost-to-equity ratios of more than 4 or 5% or commission to equity ratios of 2 or 3% in accounts with turnover ratios of 2 indicate excessive trading in common stock portfolios.
Detecting Personal Trading Abuses
By: Craig McCann (Jun 2003)
Recent actions by the New York State Attorney General have highlighted abusive personal trading practices by mutual fund portfolio managers. In this paper, Dr. McCann explains how abusive personal trading practices, including those most recently identified, can be detected in a simple, cost effective manner.