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. Financial Elder Abuse

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

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

    Accounting practices that follow required laws and regulations, ...
  5. Legislative Risk

    The risk that legislation by the government could significantly ...
  6. Employment Act Of 1946

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

    Elder Financial Abuse: Ways to Protect Yourself

    Learn behaviors and actions that will help you avoid becoming a victim of financial abuse.
  2. Investing

    The Dodd-Frank Wall Street Reform Act

    The Dodd-Frank Wall Street Reform and Consumer Protection Act, commonly called Dodd-Frank, was passed in 2010. The goal of the act is to prevent another great recession like that of 2008, which ...
  3. Financial Advisor

    Family Business Estate Tax Loophole Could Be Closed

    The Treasury department is aiming to close a loophole that would result in higher estate and gift taxes for some wealthy business owners.
  4. Financial Advisor

    Top Ways to Guard Against Financial Elder Abuse

    Financial elder abuse is rampant. Here are some steps that you and your family can take to help guard against financial scams that target older investors.
  5. Trading

    Protect Yourself From Market Loss

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

    Maximize Profits With Volatility Stops

    Find out which type of volatility stop fits your trading objectives.
  7. Taxes

    America's Most Outrageous Tax Loopholes

    From rent-a-cow tax breaks to NASCAR write-offs, check out some of America's silliest tax loopholes.
  8. 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.
  9. Financial Advisor

    How Advisors Can Help Protect Vulnerable Clients

    With longevity increasing, advisors will need to consider how to best serve aged clients.
  10. Insurance

    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.
RELATED FAQS
  1. What are restricted shares?

    Understand what a restricted share is. Learn why a company would issue restricted shares to employees and why an employee ... Read Answer >>
  2. 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 >>
  3. 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 >>
  4. 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 >>
  5. Is a Canadian resident allowed to participate in a direct stock purchase plan from ...

    There is no law that prevents Canadians from participating in direct stock purchase plans offered by U.S. companies. There ... Read Answer >>
  6. 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 >>
Trading Center