3 Lessons Learned: Regulations

Soft Law and the Global Financial System On October 29, 1929 the United States suffered Black Tuesday, the beginning of the worst financial crisis in our history. This is the day the stock market crashed, which caused a great deal of American investors to lose huge portions of their wealth. This has a rippling effect through our economy as many companies worse forced to lay off a huge amount of their workforce. This ripple was not contained to the American economy, as it led to financial crisis in many countries around the world. The Great Depression has shown to be one of the leading factors that caused World War 2. The cause of the great depression was an unregulated credit market that was doomed to burst. This is why governments in the world have passed securities regulations that work to make it so a financial crisis like this will not happen in the future. A security is another term for a financial asset, and securities regulations work to regulate the trading of these assets. The first securities regulations was the Security Act of 1933. This act made it so that companies that were hoping to sell shares to the public were not able to defraud their investors with false information. This was the first of many passed securities regulations that focused on mutual funds, debt securities, the secondary market, and more. Because economies have shifted towards a world economy, there has never been a time where securities regulations are more important. If America were to have another financial crisis, it would cause huge problems with economies across the globe. This is why minilateralism is one of the things that securities regulations focus on. This is an economic diplomacy policy where global issues are addressed by all countries because they are all stakeholders. There are a lot of ways that securities regulations work to make it so no economy is destroyed by unregulated financial trading.
Lessons Learned from Years with Regulations
There are many reasons why investors need to know about securities regulations and how international financial markets work. There are many books that you can read that will help you learn more about the impact of the regulations in place. Knowing more about securities regulations can help you to make better investments that are both socially responsible and profitable.
Doing Resources The Right Way
The Great Depression was a result of a financial market that did not have any kind of regulations in place. This is why there were many securities regulations passed that make it so a financial crisis like this will not happen again. You will be a much better investor if you know more about these securities regulations. There is a lot of information out there you can read to learn more.

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