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Tug Of War Analysis

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Tug Of War Analysis
3.2.1 Tug Of War:
Sooner or later, changes in governmental regulations and interventions reveal continuous attempts by society, through its legislative process, revealed the proper balance in a tug of war between those who pull toward free markets and those who pull toward regulated markets and direct intervention. Those pulling towards regulations want regulations they consider helpful and effective (e.g. mandatory disclosure of information about mortgages) but not regulations they consider excessive (e.g. prohibition of some mortgages). Those pulling toward free markets want markets that are helpful and productive (e.g. a free market in derivatives) but not necessarily free markets for everything (e.g. cocaine).Stock market crashes and economic
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It also provides a set of recommendations, which could help in preventing recurrence of such crisis. It has suggested reforms across the SECP, stock exchanges, Central Depository Company (CDC) and National Clearing Company of Pakistan (NCCPL). For improved co-ordination, the SECP entered into an MOU with the State Bank in March 2009. The SECP is devising broad policy parameters through which it can intervene under the emergency powers. In order to address the need for developing a long term strategy and plan for development of stock market, the SECP has drafted a capital market development plan, which will be rolled out once the consultation process with the stakeholders is …show more content…
A security is an intangible, a bundle of financial expectations buttressed with varying legal rights. An investor seeking above normal return has to try to predict the future, in terms of either the fundamental value of the security or the predictable reaction of other investors to information about the

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