When did it become a crime to invest in stocks?
Investor Jim Mankiewicz has an interesting point when it comes to investing in stocks.
Mankiewicz, who owns shares in two investment banks, says it’s a crime when people invest in stock investments in the U.S. because they’re not licensed investment advisers.
He says this is because it’s considered a felony for investment advisers to make investment recommendations.
Manksziews opinions are shared by many people.
For example, Jim Lutz, founder of Investment Banker, is an investor in several mutual funds and he’s also an advocate for a more open market for stocks.
“The SEC does not have the authority to regulate investment advisors because they don’t have to have a license to sell stock,” Lutz says.
“Investment advisers who make investment advice for individuals are not required to have that license.”
Lutz says the SEC’s enforcement actions have resulted in investors getting their investments returned, but he says the agency is working to make sure investment advice is regulated properly.
“Investment advice is often very, very expensive,” Luths said.
“We do have a lot of cases where people have invested hundreds of thousands of dollars in stocks and then the portfolio has lost money and they’ve filed bankruptcy and they lost everything.”
Mankiews believes there are more people being held accountable for their investments than ever before.
“We’re seeing more and more people going to jail and getting prison time, and I think that’s a great thing because the people who are being held responsible have got to get their money back and be held accountable,” Mankiewss said.
“When you have people going after each other in a criminal way and getting caught, you really need to have the government stepping in,” Manksziwis adds.
Makiews said the government has been cracking down on stock scams in the past few years.
Mackysons recent book, “The Investment Bankers Guide to Investing” has received positive reviews.
“I think that there’s a lot more transparency now than we’ve had in the previous years,” Mikesons book said.
The SEC has said that it’s working on a series of reforms that would make it easier for people to get financial advice.
It has also issued guidance on how to handle suspicious activity in markets and how to make certain advisers are licensed.
Metsen, the SEC director, said she was pleased with the guidance issued last year, but added that she’s also encouraged by what the agency has been doing.
“If people are going to go after people, I think it’s going to be more of a challenge for them because the market is a very complex and regulated market,” Metsen said.