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Regulatory Goals of the Security Laws - Explained

Why do Securities Laws Exist?

Written by Jason Gordon

Updated at April 6th, 2023

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What are the regulatory goals of security laws?

The regulatory goals or purpose of the securities laws include:

  • preventing manipulation of the securities market;
  • full disclosure of material information to stakeholders;
  • preventing fraud; and
  • leveling the playing field between insiders of a company and investors.

Each of these regulatory goals are not independent. Fairness and the prevention of deceit underline each objective.

Next Article: What is the Securities and Exchange Commission? Back to: SECURITIES LAW

Discussion Question

How do you feel about these securities law objectives? Are there any additional objectives that should be achieved under the securities laws?

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