Mutual funds and hedge funds have one major factor that distinguishes them....."Management"..... Now that it has become clear that debt needs to clear and be shown ...just as does stock..... And it needs to be clear to regulators that large players are not gaming the system due to size factors..... Then it is becoming clearer that both hedge funds or mutual funds need to be listed as stocks on the public exchange.... Observe the following monthly ending balances... 25.01 25.25 24.21 23.21 Ok...does this represent a stock, a mutual fund, a hedge fund ? All that the owner of the party cares about is transparency, liquidity, and making money.... Just what hedge fund owner would object to being liquid and transparent ? The managers would pay themselves via reverse dividends.... Instead of quarterly dividend dates, there would be management payment dates.... This would simplify the process dramatically and would bid good riddance to accounting valuation trickery which has been broadly utilized especially by Lehman, MS, GS, etc...and many others.... This would also make for keener competition for funds by performance..... Also...it would make the best of hedge fund management to anyone that has a stock/bond direct access account..... Suitability ? The idea of suitability would mean that due to the recent price demise...virtually no securities would be suitable for anyone..... Leverage ? Leveraging opaque instruments with accompanying false ratings and vague accounting is what has brought the financial system to its knees.....and the current excessive volatility is due to massive redemptions by mutual and hedge funds.... The above proposal remedies this situation from ever happening again..... In terms of leverage....perhaps leverage would be reflected in 1x.2x.3x.4x shares with no margin accounts per se....at the election of the buyer..... All shares could be bought on direct access for 20 cents per 100 shares.... Why should investors keep investing in brokerage advertising models whereby they are paying $5 to $10 per 100 shares....when they should be paying 20 cents per 100 shares ?