1. Industry & Trade

Making Hedge Funds And Investment Advisor Firms Safer For Investors

From , former About.com Guide

Pros

Keeping the markets safe for investors increases confidence. "The little guy" wants to know that the odds aren't stacked against him in the financial markets.

More legislation helps to stabilize a potentially volatile market. Free-floating concerns of deflation and Depression have concerned economics during 2010. Paul Krugman of "The New York Times" wrote about concerns of a "Third Depression" at midyear.

Regulatory changes are good news for financial professionals in compliance, accounting, investor relations and technology. The growth of jobs continues to exceed the number of trained professionals, according to small hedge funds polled.

Cons

More regulatory supervision prohibits growth of smaller hedge funds and investment advisory firms.

Searching for proof of insider trading throughout the industry may be difficult, time-consuming and expensive. Some firms trade using technical information.

Where It Stands

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