Here are two companies that have been playing ignorant stock market investors for years:
https://www.google.com/finance?q=NASDAQ%3AORMP&ei=D6w5V5HNKo...
https://www.google.com/finance?q=NASDAQ%3AANGI&ei=Faw5V-iPJ5...
There are literally thousands of fake or terrible biotech and tech companies in the supposedly highly regulated public markets. Base yourself in Israel or China and list on the NASDAQ. Pay someone to publish a bullish article on your blog, wait for buyers, and then dilute. You can have a field day and nobody will bother you.
My point is that investors cannot and should not be protected. Educated? Yes please.