In the spirit of July 4th, which is coming up, this series of videos will continue to explore why you should be proud to be an American investor. The two areas I’d like to discuss today are transparency and regulation.
Transparency: The U.S. stock market is the most transparent market in the world. Companies are required to disclose their financial information to the public and follow a set of accounting principles. When investing in foreign countries, like China, the same transparency does not exist and it’s difficult for investors to get factual data upon which they can rely.
Regulation: Many financiers have a love-hate relationship with regulators. However, most financiers would agree that some level of regulation is imperative to the strength of our financial system. Regulation protects consumers and investors, ensures that the financial system remains stable and continues to make funding available for investments that support the economy. Having just enough regulation helps investors sleep at night knowing that their money is in a solvent system.