This may sound counter intuitive but is consistent with first principles. Shares and debt are legal contracts and even secondary sales are regulated as securities because the law explicitly says so NOT BECAUSE OF HOWEY TEST
The ruling imposes stricter regulations on sales involving sophisticated institutional investors while relaxing regulations for less sophisticated retail investors. That is backwards. Conventional wisdom prioritizes greater protection for retail investors.
This may sound counter intuitive but is consistent with first principles. Shares and debt are legal contracts and even secondary sales are regulated as securities because the law explicitly says so NOT BECAUSE OF HOWEY TEST
The ruling imposes stricter regulations on sales involving sophisticated institutional investors while relaxing regulations for less sophisticated retail investors. That is backwards. Conventional wisdom prioritizes greater protection for retail investors.