Andrew Peterson Comment On Regulatory Notice 22-08
Andrew peterson
N/A
I completely disagree with the new regulation. I reality most publicly traded stock investments are leveraged because the companies you invested in have debt on their balance sheets. The stock a person buys is in a subordinate position to the debt. This debt helps to boost yield. Just like a leveraged fund helps an investor increase yield. If Inverse funds are eliminated then the ability to short a stock should be eliminated as well. Again you are doing the same thing; however, with an inverse your loses are limited. A short can lead to unlimited losses.
Andrew Peterson Comment On Regulatory Notice 22-08
I completely disagree with the new regulation. I reality most publicly traded stock investments are leveraged because the companies you invested in have debt on their balance sheets. The stock a person buys is in a subordinate position to the debt. This debt helps to boost yield. Just like a leveraged fund helps an investor increase yield. If Inverse funds are eliminated then the ability to short a stock should be eliminated as well. Again you are doing the same thing; however, with an inverse your loses are limited. A short can lead to unlimited losses.