Unsuitable recommendations and other unethical practices were common customer complaints. Although the scams of today are similar to the swindles of that earlier time, there are significant differences. The most obvious difference is the marketplace itself. Today, there are far more mid-income retail investors than ever. One in three U.S. households now owns securities, compared with one in 17 households in 1980.
Products are more sophisticated and choices have multiplied.
The message is everywhere. It's hard to pick up a magazine or watch television or listen to the radio without hearing advertisements for mutual funds or other securities products. There has also been a general assault on regulation as portions of industry, some elected officials, and large sectors of the media question its effectiveness. Intertwined with the current bull market is an undercurrent that declares state licensing procedures inefficient and a tax on capital. Unfortunately, this rhetoric helps provide the necessary cover for scam artists and crooks.