>There is some valid reasoning for the law... because you don't want a farmer to purchase 100,000 bad seeds and have his whole yield fail on his farm.
Will the right honorable gentleman next propose that we create a list of twelve permitted stocks, so that an investor will not purchase 100,000 risky shares only for the company to fail?
This is basically want public equity markets are. You have to be an "accredited investor" (the only requirement is having a lot of money) to invest in all the extra risky things.
That's a US thing. In the UK there's a KYC type form you fill out, self-certifying that you know what you're doing. And then you can trade CFDs, which are illegal in the US accredited or not. (Or not approved by regulators I suppose I mean, I assume professional US desks trade them OTC 'in' Europe. But I think probably European brokers even can't market them to or allow trades by US retail customers?)
Will the right honorable gentleman next propose that we create a list of twelve permitted stocks, so that an investor will not purchase 100,000 risky shares only for the company to fail?