So many of the funds that may be at risk are important for individual investors to be able to access. It seems anti-democratic to keep them away from small investors and to only grant access to some of the best types of funds to rich (aka 'qualified') investors.
Leveraged and inverse funds are important to my investment strategies. They help me protect/hedge my investments and seek enhanced returns. I am capable of understanding leveraged and inverse funds and their risks. The loss of access to these instruments would hurt me considerably.
Net Capital
Liquidity Risk Management
Credit Risk Management
Portfolio Margin and Intraday Trading
Segregation of Assets and Customer Protection
Previous:Regulation SHO – Bona Fide Market Making Exemptions and Reuse of Locates for Intraday Buy-to-Cover Trades
Up:Financial Management
Next:Net Capital
There should be no more requirements on purchasing leveraged stocks than any other stock. All stocks have an inherent risk associated with ownership and the possibility of loosing money. Leveraged securities should have no more requirements to ownership than any other security.
Knowledgeable investors should be free to invest in any listed security within their risk tolerance and financial level. Government can and should protect against fraud but should not pick winners and losers. Individuals and the market place are the best arbiters of value.
I personally would like to have more knowledge and more accessible information. The more one can comprehend the better the outcomes of their choices. I am neither for or against the proposal. I do believe customers need to read and agree to understanding the risks involved.
We should have a free market to buy and sell products. If the issue is with brokers and their practices, then deal with them specifically. People are capable of assessing risk and reward. Please do not shut down leveraged products as they can have incredible returns.
It should be my right to invest as I see appropriate for me. Be it equities, bonds, etfs, mutual funds, inverse and leveraged funds, etc. as all investments imply risk. It is up to the individual investor as to where, with due diligence, they wish to apply their money
I dont believe that leverged ETF and inverse ETFs should be locked behind account size, its probably fine to require understanding how they work, but if i want to take risks and potentially lose money i dont see why i should not be able to.
Why Does FINRA need more Power?
I am capable of making my own financial investment decisions together with my Financial Advisor.
This is the USA. and we should be free to risk what we have without more Regulation.