The Securities and Exchange Commission (SEC), Using Its Congressional Mandate

question 63

Multiple Choice

The Securities and Exchange Commission (SEC) , using its congressional mandate under the 1933 and 1934 Securities Acts, has prescribed rules governing the issuance of, and trading in, securities by businesses as well as by brokers and underwriters. This is an example of the SEC's power.

• A) legislative
• B) judicial
• C) veto
• D) executive

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Definitions:

Semiannual Interest

Semiannual Interest refers to interest that is calculated and paid twice a year, commonly found in bonds and other types of loans.

Fiscal Year

A one-year period that companies and governments use for financial reporting and budgeting, which may not coincide with the calendar year.

Accrued Interest

The interest that has been incurred but not yet paid on a loan or bond.

Fiscal Year

A 12-month period used for accounting and financial reporting purposes, which may or may not align with the calendar year.