In October, the Securities Industry Association criticized a proposal by the National Association of Securities Dealers to warn people about the risks of day trading. The association's criticism of this proposal is justified. There are a lot of problems with the proposal. Their definition of promotion is too vague. The North American Securities Administrators Association also released a report calling for more oversight of the day trading industry.
Officials say the industry is rife with poor marketing and unethical loan practices.
Stock answers The SEC has issued a report that concludes some online stock services may need to counsel their clients before allowing them to execute trades. SEC rules require brokerages advise clients about various risks and investing strategies if they already offer customers information related to trading. Experts say all these reforms are needed to make the relatively new financial service area part of the larger, established financial community. The entire market structure is changing so much with Internet opportunities that I think we will see a lot more rules and restrictions in the future. Don't mistake these reforms and new restrictions as a movement to slow consumer growth of stock trading or discourage Internet trading.