Financial Law Works
How International Financial Law Works
Black Tuesday on October 29, 1929 was the start of the worst financial crisis that has every happened in America. On this day the stock market took a deep dive, causes many American investors to lose a huge portion of their wealth. This has a rippling effect through our economy as many companies worse forced to lay off a huge amount 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 cause of the great depression was an unregulated credit market that was doomed to burst. This is why governments in the world have passed securities regulations that work to make it so a financial crisis like this will not happen in the future.
A security is a financial asset, and economic diplomacy 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 securities regulations that were passed to regulate the secondary market, mutual funds, debt securities, and more.
With the way that the economy has shifted to a world economy, securities regulations are more important today than ever before. A major crisis in America could lead to financial struggles across the globe. This is why one of the aspects of securities regulations 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 are made to prevent economies of the world from suffering from irresponsible financial trading. Check out this website at http://www.ehow.com/how_4622976_start-brokerage-firm.html and know more about brokerage firm.
There are many reasons why investors need to know about securities regulations and how international financial markets work. There are many books that you can read that will help you learn more about the impact of the regulations in place. Knowing this information can help you to make better investments that are not only profitable, but are socially responsible.
The Great Depression was caused by a financial market that did not have any type of regulation. This is why securities regulations were put into place to make it so this does not happen again in the future. Understanding more about these securities regulations will help you to be a much better investor. There is a lot of information you can use to learn more. Know how international financial law works here!