The SEC says it’s around to help you avoid securities fraud. And it does so, but only to an extent. Much of what it does is theater.
That’s why the SEC has had a poor record in discovering massive fraud and Ponzi schemes, uncovering them usually by chance, and only after they have already been committed and exposed.
But instead of preventing the bulk of transgressions, the SEC does lots of monetary damage. They tend to pick the average, uninformed investor’s pocketbook by causing unnecessary expense of legal fine-tooth-combing, printing and mailing.
And requires such action constantly, perhaps to a far greater extent than is necessary to alert an ordinarily informed investor.
Just one example: I refer to the expense of having banks, mutual funds and corporations send out useless, expensive, legalese financial literature, that the recipients do not read because they cannot understand the terms the SEC has the senders use.
The only ones who can profit are the lawyers. If a dot or letter isn’t properly crossed or is missing, the lawyers will sue the senders of that hard-to- read and comprehend mail. Again, at the expense of the poor mail recipients who never benefit from the impractical information anyway.(See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole at Twitter.)
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