Chapter 3. Role of Government in
•types of regulation
•regulation in the U.S.
I. Why regulate?
•regulation necessary when there is a market
–market outcome is NOT optimal by itself
•financial markets important to entire economy
•some investors have access to more/better
–use it to profit at expense of others
–discourage participation in markets
II. Types of Regulation
–issuers make financial information public
–level playing field?