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