Merits Of Financial And Securities Regulation
Almost every country in the world put into account the regulation of finance and securities. Most of the countries in the world always have their own regulations and also methods in which they assure that the finances and securities are regulated. Every country should ensure that their finances and securities are regulated because people might form their regulations which might not be available to other people. There are only specific laws that have been given to the financial institutions so that when offering their finances to their clients, they do not disadvantage them.
For the security any company that is selling their securities at the stock exchange market should ensure that they have been there to the regulations that are set when posting their securities for sale. When there is not appropriate adherence to the financial and securities regulation there will be dire consequences to the offenders of the law. Everyone always follows the financial and securities regulation so that they will not face the punishment of the consequences. The following demerits of financial and securities regulation.
The financial and securities regulation is a benefit to people because there will be a permanent market for financial and security purposes. It is vital for the financial and securities regulation to be regulated so that the market can be stable and ensure that anyone who to cannot find a big margin difference. The financial market regulation has enabled the financial institutions no to discriminate their clients because there are rate caps that they have been given, and they should not pass that when lending their money to the client. The finances and securities regulation will ensure that the money of a nation cannot quickly fall with a significant margin when the regulation has not been imposed.
The financial and securities regulation and share that the investors have been protected from exploitation in the financial market. The investors are significant people in a country, and they should be protected to ensure that they have raised the economy of a nation. The new investors that are willing to invest in a country should be protected so that they will compete fairly with others who are already in the market and also have equal financial and securities laws that govern them. It is crucial for a country to have financial stability because investors are always affected by it, and they are very critical to the economy since they can raise the GDP as well as creating job opportunities.