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The rationale, always, for increased regulation is that it provides more reporting transparency and insulating frameworks against malfeasance by financial firms.
Criminals usually find a way to subvert regulation, cheat and lie in reporting, or just ignore it.
The costs of most regulation is borne by the investors who utilize a firms's resources in investing, among the disadvantages you referred to.
Some analysts feel that increasing financial regulations and reporting requirements reduce Rates of Return, while not actually providing much assurance that honest dealing is taking place.
As always, "caveat emptor" - Buyer Beware, Investigate before investing, Prudent Man, and all the rest of the old saws prevail.
What else can I help you with?
Disadvantage of venture capital?
There may be several disadvantages of venture capital; however, a disadvantage to one entrepreneur may be an advantage to another entrepreneur. Focusing however on disadvantages of venture capital: (i) dilution of ownership, (ii) dilution in control, (iii) necessity of having representatives of the venture capital participate in corporate governance, (iv) increased risk of venture capital take over of the business.
How does risk sharing benefit both financial intermediaries and private investors?
How does risk sharing benefit both financial intermediaries and private investors?
What are the benefits of obtaining a line of credit for car dealers?
Obtaining a line of credit for car dealers can provide benefits such as increased purchasing power, flexibility in managing inventory, and the ability to take advantage of bulk discounts. It can also help with cash flow management and provide a financial cushion during slow sales periods.
True or False . Investors' fears can become so powerful that increased movement on the stock exchange occurs causing a financial panic?
true
What are the potential consequences of rollover debt on an individual's financial situation?
Rollover debt can lead to higher interest payments, increased debt burden, and a cycle of borrowing to repay existing debts. This can result in financial stress, damage to credit score, and difficulty in achieving long-term financial goals.
What is the disadvantage and advantage of being famous?
Wel the advantages could be that you have so many adoring fans that care about you and love you for who you are and a disadvantage could be always having the papparazzi following you. That probably gets really old after a while. I would hate that.
Advantage and disadvantage of corona of transmission line?
advantages:due to corona formation the sir surrounding the conductor becomes the conducting and hence virtual dimeter of the conductor is increased.
Advantage and disadvantage kor host country of mnc?
Advantage: Increased job creation, transfer of technology and skills, boost to local economy through investments and taxes. Disadvantage: Potential exploitation of local labor, environmental degradation, competition for local businesses, and dependence on the multinational corporation.
What is the advantage of a cohabiting family?
One advantage of a cohabiting family is increased financial efficiency, as shared living expenses can reduce individual financial burdens. Additionally, cohabiting families can provide emotional support and companionship, fostering a sense of community and connection within the household.
Which was not an advantage of early man learning to make and control fire?
One disadvantage of early humans learning to make and control fire was the increased risk of accidental burns and wildfires.
What is the advantage and disadvantage of increased pulse rate?
If you have an increased pulse rate it means that you are exercising you heart more often meaning that you have a chance of living longer because your heart is stronger but if you over work your heart then you will risk heart failure (if you have a weak heart)!
What did teddy rooservelt do to make a difference?
Increased regulation of corporations
One disadvantage of database system over previous data management is increased costs?
One disadvantage of database system over previous data management approaches is increased costs
What is The advantage and disadvantages of Pangaea?
Advantage of Pangaea: Increased biodiversity due to species distribution across a vast, connected landmass allowed for unique evolutionary pathways. Disadvantage of Pangaea: Eventually led to mass extinction events as the breakup of Pangaea caused drastic changes in climate and habitats.
State one advantage and one disadvantage of a in line engine?
One advantage of an inline engine is its compact design, which allows for better space utilization in the engine bay and often results in a lighter overall vehicle. A disadvantage, however, is that inline engines can have less smooth power delivery compared to V-type engines, especially in higher-performance applications, potentially leading to increased vibrations.
What is advantage and disadvantage of bandwidth?
The main advantage of bandwidth is that it determines the amount of data that can be transmitted over a network in a given time, allowing for faster and more efficient communication. However, a disadvantage is that higher bandwidth can lead to increased costs and may require more advanced infrastructure, which can be a barrier for some users or organizations. Additionally, if not managed properly, high bandwidth can lead to network congestion and reduced performance.
What is one advantage of free trade?
One advantage of free trade is that it leads to increased production as well as increased efficiency. Another advantage is that free trade allows for economic growth.
