Regulated Market

AAA

DEFINITION of 'Regulated Market'

A medium for the exchange of goods or services over which a government body exerts a level of control. This control may require market participants to comply with environmental standards, product-safety specifications, information disclosure requirements and so on.


The market for both prescription and over-the-counter drugs is an example of a regulated market. The Food and Drug Administration (FDA), a federal government body, tightly controls what drugs may be sold on the market, how they may be advertised, for what conditions they may be prescribed and more.

INVESTOPEDIA EXPLAINS 'Regulated Market'

Regulated markets provide obvious protection for consumers. However, some argue that the formal regulation of markets is unnecessary and imposes inefficiencies and unnecessary costs on markets and on taxpayers. These people argue that there are plenty of ways for markets to self-regulate.

RELATED TERMS
  1. Price Cap Regulation

    A form of economic regulation generally specific to the utility ...
  2. Regulation 9

    A regulation that permits national banks to open and operate ...
  3. Regulation AA

    A regulation designed to address practices by banks that are ...
  4. Regulation BB

    A regulation that requires banks to provide certain information ...
  5. Federal Reserve Regulations

    Rules put in place by the Federal Reserve Board to regulate the ...
  6. Functional Regulation

    A concept stating that a company with a specific business should ...
Related Articles
  1. Taxes

    Changes In Tax Legislation And Regulation

    Keeping on top of these amendments can help you avoid penalties and take advantage of benefits.
  2. Personal Finance

    Reg AC: What Does It Mean To Investors?

    In 2003, the SEC issued a new regulation meant to hold analysts more accountable for their reports. Find out what it means.
  3. Economics

    The SEC: A Brief History Of Regulation

    The SEC has continued to make the market a safer place and to learn from and adapt to new scandals and crises.
  4. Active Trading

    What Would Full Disclosure Mean For The Market?

    In the wake accounting scandals, more people are calling for full disclosure. But what would that even help?
  5. Insurance

    Free Markets: What's The Cost?

    Some argue that when the free market fails to protect consumers, government regulation is required.
  6. Taxes

    Making Sense Of The Tax Code

    If tax rules and regulations are Greek to you, read on to learn how to decipher them.
  7. Professionals

    Examining A Career As An Auditor

    Stricter government regulations have put auditing professionals in demand.
  8. Insurance

    Avoid The No-Health-Insurance Penalty By Feb 15

    If you don't have health insurance, act NOW or you could owe penalties on your 2015 taxes, in addition to this year's.
  9. Economics

    The Economic and Social Effects of Corruption

    Corruption results in inefficiencies in the operations of emerging economies, and prevents such economies from reaching the maximum level of development.
  10. Economics

    Can state and local governments in the US run fiscal deficits?

    Discover why most state and local governments do not – or cannot – run fiscal deficits in the same manner as the U.S. federal government.

You May Also Like

Hot Definitions
  1. Portfolio Turnover

    A measure of how frequently assets within a fund are bought and sold by the managers. Portfolio turnover is calculated by ...
  2. Commercial Paper

    An unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts receivable, inventories ...
  3. Federal Funds Rate

    The interest rate at which a depository institution lends funds maintained at the Federal Reserve to another depository institution ...
  4. Fixed Asset

    A long-term tangible piece of property that a firm owns and uses in the production of its income and is not expected to be ...
  5. Break-Even Analysis

    An analysis to determine the point at which revenue received equals the costs associated with receiving the revenue. Break-even ...
  6. Key Performance Indicators - KPI

    A set of quantifiable measures that a company or industry uses to gauge or compare performance in terms of meeting their ...
Trading Center