In order for capital markets to function well, investors need accurate information about securities. If investors do not trust firms’ disclosures, they will discount what they are willing to pay for securities, increasing the cost of capital and thereby making it more difficult, even for honest firms, to fund productive endeavors. Moreover, investment decisions based on inaccurate information distort the efficient allocation of resources in an economy.
<p><span>Thank you, Ben [Zycher], and thanks to the American Enterprise Institute for the opportunity to be part of today’s event. Before I begin, I must remind you that my views are my own and not necessarily those of the Securities and Exchange Commission (“SEC”) or my fellow Commissioners. As an SEC Commissioner, I appreciate hearing about people’s views of the SEC, even negative ones. Recently, for example, an email came in saying, “I can’t remember when the SEC was held in such LOW ESTEEM. . . . I honestly believe the SEC needs to re-evaluate the quality of and STANDARDS for SEC ON-AIR COMMENTATORS & while you are at it, please re-evaluate the SEC Referees, too.” A similar concern about SEC refereeing came in another recent weekend email: “Just sayin’ my ex boyfriend accidentally tackle[s] someone and y’all made him leave the game and then one of [the other team&