Interlocking Directorates Are Illegal Under the Clayton Act Whether or Not

question 61

True/False

Interlocking directorates are illegal under the Clayton Act whether or not the effect is to lessen competition substantially.

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Definitions:

Trading

The act of buying and selling assets, such as stocks, bonds, commodities, or currencies, in financial markets to earn a profit.

Treasury Bills

Short-term government securities issued at a discount from the par value and mature without paying interest, where the difference represents the return to the investor.

Commercial Paper

An unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts receivable, inventories, and meeting short-term liabilities.

Corporate Bonds

Long-term debt issued by private corporations typically paying semiannual coupons and returning the face value of the bond at maturity.