Which of the Following Is True of the Dodd-Frank Act

question 52

Multiple Choice

Which of the following is true of the Dodd-Frank Act passed by the U.S.Congress in 2010?

• A)It is an act that rewards organizations that follow high standards of business ethics.
• B)It punishes business organizations that are found to be involved in unethical practices.
• C)It protects the rights of foreign businesses operating in the United States.
• D)It provides monetary rewards to those organizations that take action against employees involved in professional misconduct.
• E)It encourages whistleblowers to provide information about corporate misconduct through monetary rewards.

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Definitions:

Dividend Paid

The portion of earnings a company distributes to its shareholders, typically expressed as a dollar amount per share.

Outstanding Shares

The total number of shares of a corporation's stock that are currently owned by all its shareholders, including share blocks held by institutional investors and restricted shares owned by the company’s officers and insiders.

Rate of Return

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

Market Value

The current price at which an asset or a company can be bought or sold in the open market.