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The reasons for the Reg D restrictions are not to shield people from risk, but rather to shield them from scams. When buying / selling publicly traded shares,
by apinstein 17y ago
The reasons for the Reg D restrictions are not to shield people from risk, but rather to shield them from scams.
When buying / selling publicly traded shares, there is enough regulation to reasonably protect people from outright scams.
However, it is not uncommon for someone to "pitch" investment ideas to the public that are simply scams -- anything from straight-up ponzi schemes to simply running off with money never to be found again, etc etc.
- Daniel_Newby 17y agoNo. The restrictions are not to prevent scams, but to route them through middle-men who have captured the regulatory system. Actual scam protection could only be accomplished by licensing adulthood by formal test. The kind of mental child who falls for a Ponzi scheme is doomed to squander their resources if allowed to manage their own affairs.