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FUN WITH REGULATION

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FUN WITH REGULATION The financial markets are wild and woolly playgrounds for capitalism at its  best. Every moment of the trading day, buyers and sellers get together to  figure out what the price of a stock, commodity, or currency should be at that  moment, given the supply, the demand, and the information out there. It’s  beautiful. One reason the markets work so well is that they are regulated. That may  seem like an oxymoron: Isn’t capitalism all about free trade, unfettered by  any rules from nannying bureaucrats? Ah, but for capitalism to work, people  on both sides of a trade need to know that the terms will be enforced. They  need to know that the money in their accounts is there and is safe from theft.  And they need to know that no one has an unfair advantage. Regulation cre ates the trust that makes markets function. Day traders may not be managing money for other investors, and they may  not answer to an employer, but that doesn’t mean they don’t have