The investor participate in a usually complex market. Who represents him is the professional in the activity, who knows the products, their characteristics, conditions and risks. Furthermore, the advisor has the tools to understand the 'movements of the economy' and their consequences on the instruments of his client (the investor and in some cases the issuer of the securities).
Some laws provide "the rule of market concentration", referring to the obligation that if you buy or sell securities in secondary markets, you should go to the stock market. Consequently applies to companies that provide intermediary services in that market. Other regulations extend it to the operators of the open market values. The essential thing is to understand that the law requires investors to hire the services of a professional intermediary if you invest in the stock market.
That's how we have a service relationship between an investor and professional brokerage and consulting securities. Not being optional for the investor to use the services of a professional and also beacuse the complex market and its products, each country must provide a "counterweight", creating a legal environment within which it begins, develops and ends the relationship service, being attentive to potential abuses to the detriment of the investor.
The investor or the consumer in the market is protected, because of him comes the savings that is captured for the economy of our country "oxygenate" and grow, so as to produce labor supply, consumption and then provide in general the economic development. When such protection is efficient, there is an element of the market that is motivated to participate more in it; is the investor or financial consumer of the market.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.