When the financial markets are regulated, the results can be both positive and negative. Stock market investors prefer regulation of the industry for a number of reasons. For example, regulation prohibits rogue activities such as insider trading, which can leave investors with huge losses. In some countries, regulation work is left to a single body. In other cases, multiple players may regulate the same industry players. Any type of regulation has its pros and cons.
Rules Are Different Across the Globe
In every country around the world, there are regulatory bodies that are in charge of coming up and implementing policies related to the securities market. The main difference among the bodies is the extent to which they are involved in the financial industry.
In some jurisdictions, a single regulatory body is in charge of all matters related to the financial industry. …