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The SEC doesn’t create rules to help people make good investment decisions. They create rules to help people (1) get timely & accurate information to make an in
by elliekelly 6y ago
The SEC doesn’t create rules to help people make good investment decisions. They create rules to help people (1) get timely & accurate information to make an investment decision and (2) not get taken advantage of and/or scammed.
The SEC doesn’t care whether accredited investors are more or less likely to go all-in or to make terribly risky and concentrated investment decisions. They only care about whether or not accredited investors are in a position to get (and to a lesser extent, understand) the information they need to make the investment.
- bobthepanda 6y agoTo a lesser extent, they do care about risk, but only risk with systemic level impacts.
- refurb 6y agoThis is a good point. Limiting risk at the individual level by restricting the size of the investor pool can limit systemic risk.