 Hello, this is Weyland and I'll be talking about Gresham's law which was devised in the 16th century by Sir Thomas Gresham And Sir Thomas Gresham said bad money drives out good So let's figure out what what he meant by that, but let me first say that you know Gresham's law forms the underpinning for the requirement under Securities law that there be full plain and timely disclosure of information Now let's see what what Sir Thomas Gresham meant using a contemporary example devised by Professor Ackerlof Using the used car market. So let's say half of the cars in a used car market is made up of good cars So these are these are cars that are in good working condition and These cars these good cars are are worth on average about $15,000 The other half to the of the used car market is made up of bad cars or what we'll call lemon so these cars you know do not do not work well and The average value of those cars is about $10,000 So the consumers looking for a used car Don't really know, you know, which is a good car and which is a lemon There's no look there's no easy way to tell the difference between the two so so what happens as a consequence of that is that Generally buyers are afraid of buying a lemon when they go out into the used car market They don't know if it's a good car or a lemon So that causes the average price of all the used cars including the good cars to be driven down to a price, let's say of about $12,000 So what happens then because the price is driven down to $12,000 if if you are an owner of a good car You you don't want to sell your car for just $12,000 because you know it's worth $15,000 So you try to try to sell it to to someone who trusts you and knows that the car is a good car And is willing to pay the full $15,000 so you would typically sell To your friends and relatives so you pull your good car out of the used car market Or don't put it into that used car market to begin with and sell it only to friends and relatives Who know that the car is a good car and is willing to pay for that So what happens is that many of the good cars leave the used car market and we're left with mostly lemons In that in that market So that market that used car market becomes dominated by lemons and that Consequently causes most used car buyers to be to be afraid to enter that market to buy any car Because they're they're afraid of buying of buying a lemon So these users so sorry these these buyers Leave the market so what that causes is market failure there are cars on the market and Few or fewer no buyers for those for those cars So from a from a financial markets perspective the reason that we have Securities law requirement of full plain and timely disclosure is so that is so that So that investors have enough information to be to be able to make informed decisions of what are good and bad Investments for them so that they have the confidence to to go into the investment market and to invest their money As opposed to keeping their money out of the financial markets and investing them in alternative investments such as let's say real estate or Or gold bullion