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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. There are plenty of options one can invest in such as investing in a properly diversified mix of individual stocks, mutual stocks or even exchange traded stocks. Usually, people are usually advised to invest when they are young. There are several main reasons to consider investing in stocks in-case it is a retirement goal. One of the main reasons is that stocks have offered the most of us a potential to grow. This is despite the usual ups and downs that are experienced in the market. Another reason is that a person can probably ride out of stock market drops. In such cases, people should prefer to hold stock investments for a longer duration. The third reason is that a person doesn’t necessarily have to invest all that they have in stocks. Investing is usually dependent on a person’s time horizon and other factors such as financial situations and risk tolerance.

There are risks that can originate from investments. For such reasons, there is a need for investor protection. This has resulted in the government setting up regulations and even bodies that offer protection to investors as the bodies are governed by the law. Appointed agencies have also been put up so that they can oversee and regulate companies and financial markets. They work to achieve a similar objective in as much as they have a specific range of duties and responsibilities.

Financial regulations are the rules and laws that govern the financial institutions like banks, broker and investment companies’ business dealings. 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.
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Financial and securities regulation is covered in the field of the U.S. law. What is mainly covered in the law includes any dealings in financial transactions and securities. Securities and Financial regulations are mainly covered by regulatory agencies which are purely governmental at a State and Federal level. The Securities and Exchange Commission, also known as the SEC is the main body that deals with such regulations in the U.S.
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It is possible to find cases of fraudulent activities in the field of investments. Such activities may include Ponzi Schemes that are carried out by people who want to benefit illegally. There are people who have been arrested and sued for cases regarding fraud. One of the key people who have been accused of financial fraud is Chris Brummer. It is therefore advisable that people who are in the field of investments avoid any dealings that may end them in jail as this is a sensitive field for investors.

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