October 14, 2020
The proposed changes would be a terrible idea. These investment vehicles are an easy way for persons to invest in the market as a whole, rather than individual stocks. Anything to limit the number of investors who could invest in them would reduce liquidity and increase volitility. Which is the exact opposite of what they were designed for. They are the equivalent of being able to invest in mutual funds, but with the ability to trade them similiar to stocks. Many investors find this comforting and are more comfortable trading and investing in them as opposed to individual stocks.