By Dulip Silva
Submitted 2012-04-04 11:12:06
Total Word Count: 770 Number Of Times Read: 46
In any establishment that there might be, there is need for the information on well defined regulations that govern all players and ensure an amount playing ground. There isn't any exception within the securities market as every market has laid down numerous securities laws that govern the trading from the securities in the market. These laws play a significance role within the enhancement of investment opportunities inside a country as well as makes it possible arbitrate just in case there's a misunderstanding between several players.
One of the key roles of securities laws would be to protect investors, both foreign and domestic. There's no question proven fact that investors would be the backbone of any thriving economy and hence it is mandatory to protect them from exploitation. They have to need to be kept clear of any exploitative and deceptive activities like insider trading and client assets misuse. To get this done, information is guaranteed to any investor without holding back anything that pertain their business. With this info, they can concentrate on expanding their enterprises and prevent worrying of their security of the investments.
The regulator is given the job of the licensing and authorization of people who provide investment services and ensuring that only licensed and competent players can practice. Some conmen parade themselves are "investment consultants" or some other fancy names but they don't possess the slightest idea of the stock exchange in the first place. All licensed practitioners must conduct their businesses without resulting in the customer any losses because this alone could make a trader to move shop and pool resources else. Minimum standards are set with the securities laws so that investor protection is guaranteed
The second major reason why securities laws are set up is to ensure a level arena. By making certain the markets are unbiased, open and well-organized all work at protecting the interests of each and every player. One essential element of fairness is making certain investors are very well nourished with information, on time and without distortion. Both pre-trade and post-trade transactions should be made known instantly instead of concealing some information for personal gains. This really is one role or even the securities regulators which should not be compromised at all costs.
Financial collapse of a market intermediary can't be eliminated, however much we attempt. However, the potential risks of these sour end results, whether by design or by accident should be put under control using the securities laws. In the event that eventually such collapse come knocking, what the law states should have well defined corrective measures in position to safeguard the investors from incurring losses. If the failure is linked to a particular institution, then your law should have a mechanism of treatment of affected institution from the operation from the rest, leaving another sectors unaffected.
It is vital that in almost any market setting, the investor remains safe and secure legally. Failure to do this may result in exploitation as well as harassment. When this happens, the investors experience losses. An investment that constantly incurs losses isn't worth the pain, which may make the investor to shut shop and move to another region with better securities laws that protect their investments.
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Submitted 2012-04-04 11:12:06
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