Margin stock regulation is extremely important to the efficient and consistent functioning of financial markets. Many rules have been developed over the years to protect financial institutions and investors from themselves and each other as people try to make money in financial markets. One of the most dangerous areas for the financial system as a whole is leveraged trading, hence the importance of margin stock regulation. Although it is not specifically covered in this article, unregulated trading of this type had a great deal to do with the collapse of financial markets in 1929.