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A regulator suggests a tightening of disclosure rules. A politician from party A says that this is a good idea because this increases investor protection

A regulator suggests a tightening of disclosure rules. A politician from party A says that this is a good idea because this increases investor protection against fraud. A politician from party B says that this is a bad idea because this makes it costlier for companies to be publicly listed. Which one of the 2 politicians is right and why?

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