The G: You Don't Want the Doc to read " US Govt vs Your Name"

Most market regulation happens on the back of a large decline. Useful security laws were created for US Markets in the 1930's protecting the everyman, and I have always held the opinion of Milton Friedman who thought insider trading should be legal, and if the secretary over heard the news of a takeover - she would buy stock first - before others, and she should have that right due to her proximity and the natural law.

Not everyone feels like Uncle Milton and since 1929 The G developed a personality reflected by this journalist in the late 20's...... I always contend, you don't want the document to read "US Govt vs Your Name".

" Congress did not take away from the citizen his inalienable right to make a fool of himself. It simply attempted to prevent others from making a fool of him. As to its efficacy in regulating securities issuers, the sunlight theory may be summed up by a saying: Those who are forced to undress in public will presumably pay some attention to their figures."

The great stock market crash of 1929 and the ensuing depression are generally credited with providing the impetus for federal securities legislation. The first major federal legislation enacted in reaction to the stock market crash was the Securities Act of 1933 (the "'33 Act"). The '33 Act, administered by the newly created Securities & Exchange Commission (the "SEC"), provides for the registration of the initial distribution of most securities. During its consideration, some legislators wanted the law to take the form of the New York Fraud Law while others wanted it to provide the type of merit tests which are now found in some blue sky laws.
The original draft of the '33 Act did contain merit tests, but they were deleted in the final draft. The law provides for full disclosure of all material facts. This "sunlight theory of regulation" is based on the assumption that if investors are given all of the necessary information they will make wise investment decisions and clearly FINRA and the New Millenium Manhattan prosecutor have taken the Gallion facts and rooted back into the dark underbelly of research and non public information......more to come on this story.