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POTENTIAL INVESTORSPotential investors review avariety of publications anduse an assortment of othersources to learn aboutinvestment opportunities.Which type of source isgenerally the mosteffective for acquiringinvestment information?Business and the ConstitutionThe federal government derives its power to regulate businessfrom the commerce clause of the United States Constitution. Thecommerce clause says Congress has the power to regulate commerce“among the several states,” meaning the federal government has thepower to regulate interstate commerce. During the last century, the U.S.Supreme Court gradually enlarged the scope of the government’s powerto regulate business. Now the federal government can regulate any businessactivity that affects interstate commerce, even one that occurs completelywithin the boundaries of a single state.Securities RegulationAfter the stock market crash of 1929, experts identified the sale andpurchase of worthless securities as a major cause of the collapse. Tocombat this problem, Congress passed the Securities Act of 1933 andthe Securities Exchange Act of 1934. These acts were intended to protectChapter 30: Corporate Regulation and Expansion 647