The ________ Is a Federal Act Designed to Prevent Fraud

question 42

Multiple Choice

The ________ is a federal act designed to prevent fraud and other abuses associated with private pension funds.

• A)ERISA
• B)COBRA
• C)FLSA
• D)FMLA

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Definitions:

Margin Required

The minimum amount of funds that must be deposited with a broker when borrowing to buy securities or entering into a futures contract, serving as collateral.

Over-the-counter

A decentralized market, without a central physical location, where participants trade stocks, commodities, currencies, or other instruments directly between two parties and not through a central exchange.

Securities Market

The Securities Market is a marketplace where financial instruments like stocks, bonds, and derivatives are issued and traded, facilitating capital flow and investment.

Underwriting Syndicate

A group of financial institutions that work together to issue new securities to the public, sharing the risk associated with the underwriting process.