investor protections

Investor protections are legal measures designed to safeguard individuals who invest their money in securities, like stocks or bonds. These protections help ensure transparency, prevent fraud, and promote fair trading practices. Key elements include regulations requiring companies to provide accurate information about their financial health and risks. Additionally, organizations like the Securities and Exchange Commission (SEC) oversee the markets to uphold rules against misleading practices. Investor protections aim to foster trust, encouraging more individuals to invest while minimizing the risk of loss from dishonest or harmful activities in the financial markets.