Case Study: My Experience With Regulations

All About Financial and Securities Regulations

There are many reasons why people like to venture in investments. When people invest in stocks, they give their money the ability to grow. The types of investments available include exchange traded funds, stock mutual funds as well as a mix of properly diversified individual stocks. When people are young enough to understand the stock markets, they can be advised to start investing then. In case investing in stocks is a retirement goal, there are many advantages associated with doing so. Investing in stocks has given people the potential for growth, financially. This is despite the usual ups and downs that are experienced in the market. A person can always leave the stock market in cases of drops that are experienced there. It is, however, advisable that stock investments be held for a long period of time. One more important thing to note is that a person doesn’t have to put everything they have in stocks. Stock investments are usually dependent on someone’s time horizon, risk tolerance and also their financial situations.

The business of investments is usually full of risks. For this reason, there arises a need for investor protection. The government has put up bodies and regulations which are governed by law in order to offer investors the required protection. Appointed agencies have also been put up so that they can oversee and regulate companies and financial markets. The agencies are given certain responsibilities and duties for them to work independently so that they can achieve objectives that are similar.

See also  The Key Elements of Great Services

Financial institutions such as banks, investment companies, and brokers are governed by the rules and laws in Financial Regulations. The rules are usually effected by government regulators or international groups in order to protect investors, keep the markets orderly and finally promote financial stability.
Why Options Aren’t As Bad As You Think

Financial and securities regulation is covered in the field of the U.S. law. The law mainly covers dealings with securities and transactions. The term Securities and Regulation is mainly understood to cover both the federal and state level regulation by regulatory agencies that are purely governmental. The Securities and Exchange Commission, also known as the SEC is the main body that deals with such regulations in the U.S.
Resources – Getting Started & Next Steps

Fraudulent activities can always occur in the field of investments. These are Ponzi like Schemes where people want to benefit illegally. However, most people have been arrested and even sued for fraudulent cases. One of the key people who have been accused of financial fraud is Chris Brummer. People are therefore advised to avoid any business that may lead them to be accused of being fraudulent.