A Brief History of Options
All About Financial and Securities Regulations
Investments are a nice thing to all of us thus giving people a reason to venture in them. When a person invests in stocks, they give their money the required potential for the funds 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 as they do have the potential to do so. There are several main reasons to consider investing in stocks such as treating the investment as a retirement goal. One of the main reasons is that stocks have offered the most of us a potential to be financially stable. The second reason is that in case of stock market drops, a person can always pull out. 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. Stock investments are usually dependent on someone’s time horizon, risk tolerance including their financial situations.
Being in the business of stock investments, risks have to be realized. This is why there is a need to protect those that decide to put their money in investments. This has brought about government involvement as they have taken steps to set up regulations and even bodies that offer protection to investors. Companies and financial markets are overseen and also regulated by agencies that have been set up to offer that service of overseeing them. Each of these agencies have a precise range of responsibilities and duties thus being able to work independently as they aim to achieve similar objectives.
There are rules and laws in financial regulations whose aim is to govern financial institutions like banks, brokers and also the dealings of investment firms. The government and other international groups enforce the rules and laws so that they can protect investors, keep the markets in order so as to ensure that there’s financial stability.
The principles in the financial and securities are covered in the field of the U.S. law. The main thing covered in the law includes any dealings in financial transactions and securities. The term Securities and Regulation is mainly understood to cover both the federal and also state-level regulation by regulatory agencies that are solely governmental. The Securities and Exchange Commission, also known as the Securities Exchange Commission is the main body that deals with such regulations in the U.S.
It is possible to find cases of fraudulent activities in the field of investments as they have been witnessed. Some of these activities are carried out knowingly by people who want to benefit illegally, and are also known as Ponzi Schemes. There are people who have been arrested and sued for cases regarding fraud. One of the key people to accused of financial fraud is Chris Brummer. It is advisable that people should avoid any dealings that may eventually land them in jail as the field of investments is a sensitive one.