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.