And who decides if such has been done and how do they decide it?
Would this mean that using attractive people in advertising is now banned because the average person is ignorant of how the attractiveness in an advertisement impacts their impression of that advertisement? Those making the add are keenly aware of this and use it to their advantage.
>And who decides if such has been done and how do they decide it?
The SEC, just like now. You could argue they aren't as good at it as they should be, but that doesn't really change anything.
There are limits of what you can invest here, as opposed to the normal stock market where there aren't. So at least that's a plus. Nobody will in fact be able to lose their life savings here. Just 10% of it.
To the extent that the person taking advantage doesn't lie or otherwise deceive to exploit the other's ignorance or bad decisions.