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Entry into the investment field can be a challenge and a serious undertaking. In contrast to banking, securities are not secured by the federal government. Proper research and evaluation of security investment is required to protect your investments. Regulations laws of the industry are predicated on the divulging of information regarding investment products.


A large number of legislation and regulations have been created that enforce fairness within the financial and securities investment industry. Primary objectives of these statutes is to safeguard consumers, taxpayers, and enhance the stability of the market. To prevent financial crisis, investors and companies must adhere to these regulations. Recent reforms to these laws provide mechanisms for the resolution of financial crisis without the use of taxpayer money. Financial regulations also provide protection to retail investors, small investors, and depositors. As a result, these rules foster transparency that contributes to the financial stability of the market. As such, laws provide a risk adjusted compensation system in the event of a crisis.


Effective regulation of financial markets promotes sustainable economic growth. This is achieved in four major ways. The first principle is the removal of market barriers. The second principle involves maintaining open access to the market for different investors. A third factor involves the development of policy and enforcement by agencies and investors. Fourth, enforcing regulations and laws  regarding investments.


The SEC requires public companies to disclose financial information to the public. Publicly revealed information about companies, comprises a pool of information useful to investors in the analysis of whether to hold, buy, or sell securities. This information assists the growth and development of the national economy. In ensuring this objective is achieved, the SEC works in collaboration with all participants, listens to their concerns, and learns from these experiences. As such the SEC oversees the activities of traders, brokers, advisors, stock exchanges, and mutual funds.


In this respect, the SEC is concerned with promoting disclosure of market-related information, maintains fairness, and protects against fraud. The SEC's main goal is the implementation of legislation related to investments, investors and market regulation. Failure to adhere to its regulations leads to civil lawsuits to enforce regulations. Cases handled by the SEC include the disclosure of incorrect information, insider trading, and accounting fraud.


To accomplish this mandate, the SEC supports investor education on its website and the EDGAR online database for the disclosure of company documents. As part of its operations, the commission involves other government agencies, departments, stock exchanges, and private sector companies in developing policy. Developed policy extensively covers all areas of security investment. Financial regulations address all key components of financial products.


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