The Securities Exchange Act of 1934 Is Concerned with the Secondary

question 49

True/False

The Securities Exchange Act of 1934 is concerned with the secondary distribution of securities in the national securities markets and in the over-the-counter markets.

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Definitions:

Duty of Care

A legal obligation imposed on individuals or entities requiring adherence to a standard of reasonable care to prevent harm to others.

Illegal Dividends

Dividends distributed by a company despite it not having sufficient profits or legally available capital, violating corporate law or its own articles of incorporation.

Shareholder's Derivative Suit

A legal action brought by shareholders on behalf of a corporation to enforce or defend its rights when the corporation's management fails to do so.

Black Market

An illegal trade of goods or services that violates governmental regulations, often to avoid taxes or because the goods are prohibited.