Investors’ confidence .
The regulatory changes affect the dynamic investors behavior may change in negative and positive way,
that in positive way it may enhance the that protect investors can lead to increased confidence in the
market .When investors can lead to increased confidence in the market .When investors feel secure
there are more likely to invest contribution to market investment . Also they can change in negative way
that regulatory passive overly restrictive might deter investment , a special from institutional investors
who may seek more favorable condition in other market.
Change in Market stability,
stronger regulation, implementation of regulation designed to prevent fraud and ensure temporary can
lead to a more stable market environment that stability can encourage long term investment and reduce
volatility , benefit the border economy. Deregulation can lead conversely regulation can lead to
increased risk taking behavior among investors ,potentially resulting in market and crushes which can
make the harm economy.
Entry and exist investors
Lower barrier to entry regulation that simplify the process for new investors to enter the market can
increase participation from retell and institutional investors . This influx of capital can drive innovation
and growth drive innovation and growth .Restrictive regulations stricter requirement may push some
investors out of the market or discourage new participants leading to reduce liquidity and potential
stagnation in economic activity. The market efficient improved information flow regulation that promote
transparent and disclosure can lead to more efficient market , When investors have access to better
information, they can make informed ,improving price discovery and allocation of resources. Inefficiency
from over regulation excessive regulation may create barriers that hinder efficient market operation
leading to mispricing of assert and reduce competition.
Shift in investment strategies
Adaptation of new strategies to new regulation changes force can force investor to adopt the strategy
such as reallocating assert or exploring alternative investment vehicles line response to new
requirement. Investors may become a more risk or shift toward more conservative investment if they
perceive increase regulatory uncertain it or risk in certain sectors. That lead the impact on economic
growth do to shifts of the investors from the mobile to the confederative a situation that made the
under development in case of the growth of the capital market due to some challenge that challenging
either by the regulatory or in other sectors.
