A Corporation That Does Not Issue Its Shares to the General

question 66

True/False

A corporation that does not issue its shares to the general public is usually known as a widely held corporation.

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Definitions:

Cease-and-desist Orders

Legal orders issued by a court or government agency to stop an entity or individual from continuing a particular action.

Civil Penalties

Fines or financial sanctions imposed by a regulatory agency as punishment for violating rules or regulations.

Misappropriation Theory

A legal theory regarding insider trading that holds individuals liable for trading on confidential information.

SEC Rule 10b5-2

A regulation established by the Securities and Exchange Commission (SEC) that clarifies the definition of insider trading, particularly in relation to the misuse of non-public information.