Tracing is a method that appears within multiple fields of law. Distinct conceptions of tracing, however, have arisen independently within securities and remedial law. In the securities context plaintiffs must “trace” their securities to a specific offering to pursue certain relief under the Securities Act of 1933. In the remedial context victims who “trace” their misappropriated value into a wrongdoer’s hands can claim any derivative value, even if it has appreciated.
This article is the first to compare and then cross-apply tracing within these two contexts. Specifically, this article argues that securities law should adopt a version of the “rules-based tracing” method from remedial law. This method’s tracing of exchanged value, instead of purchased securities, will restore broad access to private civil remedies and the optimal level of deterrence for fraudulent public offerings.
Banking and Finance Law | Business Organizations Law | Commercial Law | Comparative and Foreign Law | Legal Remedies | Securities Law
Date of this Version
Peter B. Oh, "Tracing" (November 16, 2005). bepress Legal Series. bepress Legal Series.Working Paper 864.