San Antonio Business Daily

What is the function of the Securities and Exchange Commission?

1.What is the function of the Securities and Exchange Commission? 2. What are some of the advantages of mutual funds? 3. What are some of the ways an investor can diversify investments to reduce risk of loss? 4. Why are debentures considered riskier than other types of bonds?

Public Comments

1. 1. To protect investors and to prevent securities fraud 2. Diversification: spreading the risk over multiple companies rather than buying just the stock of one company, buying a fund that invests in both stocks and bonds (balanced funds) and having the ability to buy several stocks in a single fund without paying multiple trading commissions 3. Asset allocation: buying both stocks and bonds, some large company investments, some small company investments, some for value, some for growth some in different sectors and in different countries 4. Debentures pay fixed interest over long terms of 10-40 years - the interest may be too low and you may not get a good return on your investment or the interest may be too high and the company is forced to pay it anyway. Debenture are secured by the assets of a company, so debenture holders can force a company into liquidation.