There are many reasons why people like to venture in investments. If a person invests in stocks, they give their money the potential to grow. There are plenty of options one can invest in such as investing in a properly diversified mix of individual stocks, mutual stocks or even exchange traded stocks. It is usually advisable that people invest when they are young. People invest for different reasons, and in this case, if the investment if a retirement goal, it is wise to go ahead and put your money in the stock. This is because stock investments offer people the potential to mature financially. This is despite market ups and downs that are usually experienced by investors. Another reason is that a person can probably ride out of stock market drops. 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. Investing is usually dependent on a person’s time horizon and other factors such as financial situations and risk tolerance.
Being in the business of stock investments is associated with risks. This is why there is a need to protect the investors. The government has put up bodies and regulations which are governed by law in order to offer investors the required protection. Companies and financial markets are overseen and regulated by these agencies which have been set up for that obligation. Each of these agencies have a specific range of responsibilities and duties which enable them to work independently as they aim to achieve similar objectives.
There are rules and laws in financial regulations that govern financial institutions like banks, brokers and also the dealings of investment companies. These rules are put in place by the government and other international groups so that they can offer protection to investors, maintain orderly markets as well as promote financial stability. Call Chris brummer to know more!
There is a field in the U.S. law that covers regulations dealing with financials and securities. The law mainly covers dealings with securities and transactions. Regulations governing financial and securities transactions are usually covered at a State and Federal level. In the U.S., there is a body known as Securities and Exchange that deals with these kinds of regulations. To learn more about financial adviser, visit http://en.wikipedia.org/wiki/Financial_planner.
In the field of investments, fraudulent activities always occur. Such activities may include Ponzi Schemes that are carried out by people who want to benefit illegally. Most people have been arrested and also sued for fraud. Chris brummer is one of the key people to be accused of financial fraud. People are therefore advised to avoid any business that may lead them to be accused of being fraudulent.