Reasons Finances Are Securities Should Be Regulated.
Financial and securities regulation is an essential thing that is almost conceded in every country. In each country, there is their own rules concerning the provision of financial and securities. Finances are very important in any country, and they should not be left without any regulation because people might form their own rules which might not be favourable to other people. The financial regulation has gone an extra mile to the financial institution where the ensure that the financial institution does not take any advantage of the clients with their finances.
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. Any person that does not follow the financial and securities regulation he or she is having to face the consequences that might be severe and sometimes. 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 regulation of the financial and securities provide that there is a stable market for finances and securities. 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. Financial and securities regulation have assured that the finances of a country have maintained their value and they cannot draw with a considerable margin.
The financial and security regulation is important to a nation because it will ensure that all the investors that are willing to invest in a society are protected from any exploitation. 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.