Flux Corporation Is a Public Company Whose Shares Are Traded

question 4

Multiple Choice

Flux Corporation is a public company whose shares are traded in the public securities markets.Under the Sarbanes-Oxley Act of 2002,Flux is subject to the direct corporate governance requirements of

• A)any other public company with which Flux exchanges shares.
• B)any state in which Flux does business.
• C)the federal government.
• D)the state in which Flux incorporated.

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Definitions:

Rate of Return

The net gain or loss on an investment over a specified time period, expressed as a percentage of the investment's initial cost.

Short 1,000 Shares

The act of selling 1,000 shares of a stock that the seller does not own, with the expectation of buying them back at a lower price for a profit.

Repurchase

The act of a company buying back its own shares from the marketplace, which can affect the stock price and shareholder equity.