Question

discuss the pros and cons of regulatory agencies like the SEC overseeing profit-making institutions

Answer 1

Pros and Cons of regulatory agencies like the SEC overseeing profit-making institutions

Pros of regulatory agencies like the SEC overseeing profit-making institutions are that it protects investors from risks. It makes provisions for complete disclosure by the profit making institutions to prevent manipulative practices in market and frauds. It monitors the market practices like acquisitions and is empowered by authority to take civil action for law enforcement. It is for promoting fair dealing in the market. It provides information through electronic channels about registration of companies and their financial reports and background.

Cons of regulatory agencies are they may make the whole process complex for business institutions and small companies. It may deter the companies seeking public funds as they need to meet complex regulatory standards and may lack necessary expertise and resources for ensuring compliance. The multiple regulatory agencies may create duplication and overlapping of responsibilities.