The problem is not people spending money on "worthless/ frivolous" things.
Investor protection are about Fraud protection. NOT, because it is good or bad to spend money on something.
If you spend 2 Million dollars on a car, you are getting exactly what you were sold. If you buy a lottery ticket, you are getting exactly the odds that were promised to you.
But investments are a different story. Someone is trying to promise you that your investment will go up. They are making claims that they cannot guarantee.
Investor protection are about Fraud protection. NOT, because it is good or bad to spend money on something.
If you spend 2 Million dollars on a car, you are getting exactly what you were sold. If you buy a lottery ticket, you are getting exactly the odds that were promised to you.
But investments are a different story. Someone is trying to promise you that your investment will go up. They are making claims that they cannot guarantee.
That is why investments are regulated.