Legislative Overkill

DEFINITION of 'Legislative Overkill'

A law enacted to stop or prevent the abuse of a loophole, but ends up imposing more restrictions than are necessary for reasonable prevention.

BREAKING DOWN 'Legislative Overkill'

In the context of the market, many people believe that investor education and further transparency do much more for the market than stricter legislation.

RELATED TERMS
  1. Loophole

    A technicality that allows a person or business to avoid the ...
  2. Securities Act Of 1933

    A federal piece of legislation enacted as a result of the market ...
  3. Financial Elder Abuse

    Financial elder abuse can take many forms including fraud or ...
  4. Reciprocal Statutes

    Legislation enacted between two or more states promoting commerce. ...
  5. Creative Accounting

    Accounting practices that follow required laws and regulations, ...
  6. Employment Act Of 1946

    An act of legislation enacted by the United States Congress that ...
Related Articles
  1. Investing

    Protect Yourself From Market Loss

    There are several simple strategies you can use to protect yourself from downside risk.
  2. Trading

    Maximize Profits With Volatility Stops

    Find out which type of volatility stop fits your trading objectives.
  3. Markets

    EU Privacy Laws May Pinch Big Tech's Profits

    Will the EU's new privacy laws cut into the data harvesting that has been Big Tech's bread and butter for a decade?
  4. Trading

    Why Is Short Selling Legal? A Brief History

    In the U.S., before a short sale can occur, broker/dealers must have reasonable grounds to believe that shares can be borrowed and delivered on time.
  5. Financial Advisor

    How Advisors Can Help Protect Vulnerable Clients

    With longevity increasing, advisors will need to consider how to best serve aged clients.
  6. Investing

    How The Sarbanes-Oxley Era Affected IPOs

    After the infamous collapse of companies like Tyco, Enron and WorldCom, the government responded to try and prevent it from happening again.
  7. Trading

    A Logical Method Of Stop Placement

    If holding on to losing trades is human nature, this tool will help protect you from yourself.
  8. Markets

    Lawmakers May Bring Joy and Pain to Healthcare

    Congress will not remain idle, and some lawmakers have expressed willingness to pursue ambitious healthcare items.
  9. Personal Finance

    Compliance: The Price Companies Pay

    Increased compliance standards make investors feel safer, but they also increase the cost of doing business.
  10. Retirement

    Doctors Helping to Prevent Retirement Scams

    Financial scams perpetrated on seniors are far too common and can be devastating. Increasingly, healthcare providers are playing a role in spotting them.
RELATED FAQS
  1. Why won't my broker allow me to sell one stock and buy another on the same day?

    There are two likely reasons why a customer would be unable to buy and sell a stock in the same trading day. For simplicity's ... Read Answer >>
  2. What can a business do to prevent a merger?

    Learn how to prevent business mergers, including hostile takeovers, that are not in consumers' best interests through the ... Read Answer >>
  3. What is the Dodd-Frank Act? How does it affect me?

    The Dodd-Frank Wall Street Reform and Consumer Protection Act is a massive piece of financial reform legislation passed by ... Read Answer >>
  4. What are key government regulations that affect investing in the banking sector?

    Discover how the global financial crisis of 2008 changed the face of banking in the United States and around the world by ... Read Answer >>
  5. What's the best option for selling grants, market or limit?

  6. What does "gather in the stops" mean?

    "Gather in the stops" is a trading strategy used by investors to trigger stop orders already in place so that the price of ... Read Answer >>
Trading Center