Friday, 28 April 2017

Objectives of Market Regulation

  • Control fraud or deception of uninformed market participants.
  • Control agency problems by setting minimum standards of competence for agents and by defining and enforcing minimum standards of practice.
  • Promote fairness by creating a level playing field for market participants.
  • Set mutually beneficial standards for financial reporting.
  • Prevent undercapitalized financial firms from exploiting their investors by making excessively risky investments
  • Ensure that long-term liabilities are funded.

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