The Economic Effects of Federal Regulation of the Market for New Security Issues

The maintenance of competition protects the community against the evils of monopoly. But it affords no protection against the harm that may be done by competitors. Competing sellers and competing buyers may not be equally well informed, and those who possess information may take advantage of those who lack it. . . . Government is therefore concerned, not only with the preservation of competition, but also with the ways in which men compete. So laws have been enacted to equip traders with accurate information.1