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> Unregulated securities are often a synonym for "scams" that is why you have to be a qualified investor. That's the point though, scams are scams whether they
by v64 7y ago
> Unregulated securities are often a synonym for "scams" that is why you have to be a qualified investor.
That's the point though, scams are scams whether they're run by a loan shark or Bernie Madoff. Anyone should be allowed to invest their capital in any legitimate venture they see fit, and anything that meets the legal definition of a scam should be shut down and barred from taking money from anyone.
It's quite patronizing that the government takes the stance of "If you don't have X amount of money, you're not wise enough to tell the difference between a scam, a foolish business venture, and a legitimately risky business venture. Better leave that to the experts (and their commissions)."
- perl4ever 7y agoWhen there's an endless supply of "marks", it means that you, as a hypothetical sensible and intelligent entrepreneur are faced with competing with them in good times, and then none of you can deal with the bad times. Free markets can't fix the effects of collective error or stupidity through some magical means. They can reinforce it.
- v64 7y agoI agree with you, but I disagree that the solution for it is "You can only invest in these ventures if you have X net worth". Having more money does not necessarily imply one is less foolish, and it disqualifies those who are capable of properly evaluating an opportunity but are not high net worth individuals.