The Securities and Exchange Commission (SEC) Was Established In1934 to Help

question 28

Multiple Choice

The Securities and Exchange Commission (SEC) was established in1934 to help regulate the U.S. securities market. Which of the following statements is true concerning the SEC?

• A) The SEC prohibits the sale of speculative securities.
• B) The SEC regulates only securities offered for public sale.
• C) Registration with the SEC guarantees the accuracy of the registrant's prospectus.
• D) The SEC's initial influence and authority has diminished in recent years as the stock exchanges have become more organized and better able to police themselves.

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Definitions:

Extrinsic Rewards

Benefits provided from an external source as recognition for an individual's performance or behavior, often tangible like money or awards.

Creative Behaviour

The act of generating new and useful ideas, processes, or solutions.

Autonomy

The degree to which individuals or units have the freedom to make decisions and take actions independently.

Positive Affect

A psychological term that denotes the experience of pleasurable emotions such as joy, satisfaction, and enthusiasm.