On October 29, 1929 the worst financial crisis in American history started on what is known on Black Tuesday. This is the day the stock market crashed, which caused a great deal of American investors to lose huge portions of their wealth. This even had a rippling effect through the rest of the economy as many Americans were forced to lay off huge portions of their workforce. This ripple effect was not contained to the American economy, as it led to financial crisis throughout the world. The Great Depression is one of the contributing factors that brought on German nationalism and World War 2. The Great Depression was caused by an unregulated securities market that was doomed to fail. This is why there have been securities regulations passed that look to stop this sort of event from happening in the future.
A security is a financial asset, and securities regulations are rules that govern how these assets can be traded. The first securities regulations was the Security Act of 1933. This act made it so that companies that were hoping to sell shares to the public were not able to defraud their investors with false information. This was the first of many passed securities regulations that focused on mutual funds, debt securities, the secondary market, and more.
With the way that the economy has shifted to a world economy, securities regulations are more important today than ever before. When America is facing a major financial struggle, it could cause economies across the globe to fail. This is why one of the things that securities regulations focus on is minilateralism. This is economic diplomacy where global issues are addressed by every country because every country is a stakeholder. There are a lot of ways that securities regulations work to make it so no economy is destroyed by unregulated financial trading.
What Do You Know About Finances
There are many reasons that investors and companies alike need to know about securities regulations and how the international financial market works. There are many books that you can read that will help you learn more about the impact of the regulations in place. Knowing more about securities regulations can help you to make better investments that are both socially responsible and profitable.
5 Key Takeaways on the Road to Dominating Resources
The Great Depression was a direct result of financial assets being traded without any kind of market regulation. This is why several securities regulations were put into place to avoid a financial disaster like this from happening again. Knowing more about securities regulations can help you be a better investor. There is a lot of information out there you can read to learn more.