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Opening markets leads to prosperity because open markets allow forcompetition, which is the only method by which the daily activityof millions of people can be coordinated without coercion.
In order for capital markets to function well, investors need accurate information about securities. If investors do not trust firms’ disclosures, they will discount what they are willing to pay for securities, increasing the cost of capital and thereby making it more difficult, even for honest firms, to fund productive endeavors. Moreover, investment decisions based on inaccurate information distort the efficient allocation of resources in an economy.