The regulations that have been put into place to protect investors, consumers and the financial markets are ethical and necessary to promote a free market. These regulations provide stability for the economy and peace of mind for individual investors and companies that want to make an investment. The Securities Act of 1933 is an example of the protection that the consumers get when they choose to purchase securities. The Securities Act of 1933 states that anyone who offers or sells securities in violation of Section 5 is liable in a civil action to the purchasers (Galanti, 2021). The seller would not want to be liable in a civil action to the purchaser and lose money so the purchaser would feel safe purchasing securities. There should always be a system of checks and balances that are able to control the economy and ensure that financial institutions take accountability for their practices. If the financial institutions did not take accountability many individuals may be out of money with no one to be held accountable.

1. Response to this discussion