Please don't assume that investors don't understand the risk associated with leveraged investments. If you want to fix the market, then don't allow the short interest of a stock to exceed the total float of the long interest. Verify that ETN are properly backed so wild market swings can be covered.
Here's why I believe that leveraged and inverse funds are useful for risk-adverse investors. Investing a small percentage of a portfolio in these types of investments can reduce the risk of the total portfolio because they move inversely to typical asset classes and a small amount can provide a large amount of diversification and risk-reduction.
I use my leveraged funds to hedge various positions. they are useful for reducing the amount of funds necessary for taking a position.
I feel your rules may limit my access to these useful tools.
My brokerage houses provide extensive information and they outline the risks and of these products.
Robert Pallaron
We can handle our own investing and risk taking, its ok if I got to the casino and lose my house but it's not ok for me to invests in things I see fit, so is it really about the investing or control over my life or stoping ability to build wealth.
There is no need for any additional regulation on these funds. The risk is spelled out on the prospectus. These products give the average investor the ability to trade the indexes, either long or short, in a reasonably priced fund, as opposed to trading the DIA at 338.00 per share. Level the playing field, not the other way around.
FINRA,
I am a collegiate graduate in Finance and I understand the risks associated with each of my investments, and you have no right to bar me from these financial instruments. If this was the case, stupid people should be barred from the equity market entirely. This is wrong, and does not exemplify our ownership society.
The SEC has no business limiting investors in any way. They already enforce their will through litigation, something completely arbitrary. The investor is at risk while investing, that's why it's investing and not guaranteed.
The SEC is an embarrassment and should be dismantled. Gatekeeping upward mobility under the guise of protection is absurd.
Comments: Hi, leveraged instruments have done well for me and I'm fully aware of the risks. They're mine to take. By removing access to the average customer, you're hurting them and being excessive in regulation.
I support reasonable checks like with options trading but not to discourage investors excessively.
Please make sure that you impose stringent requirements for qualified investors to purchase complex securities, lest the financial industry put the economy at risk by duping thousands of naive investors as it has in the past. Also, consider outlawing especially dubious investments with no social utility, like cryptocurrency.
No more regulations. I should be able to make the investment choices I choose. I am capable of understanding the risks of securities and crypto funds without any interference. I am able to do my own research - and do so. Please do not burden me with more regulations. Thanks! S Hicks.