Which of the Following Is True Regarding the Regulation Propounded

question 41

Multiple Choice

Which of the following is true regarding the regulation propounded by the SEC titled Regulation Analyst Certification,Regulation AC?

• A) It prohibits analysts from issuing reports that they do not personally believe to be true, and it also requires the disclosure of any analyst compensation arrangements related to specific recommendations or views contained in research reports.
• B) It prohibits analysts from issuing reports that they do not personally believe to be true, but it does not require disclosure of any compensation reports.
• C) It requires that analysts report compensation arrangements in relation to recommendations or views contained in research reports but, because of problems involving proof, it does not specifically prohibit analysts from issuing reports that they do not personally believe to be true.
• D) The regulation will be put into action in phases with the first phase, effective in 2012, requiring disclosure of compensation arrangements in relation to recommendations or views contained in research reports and the second phase, effective in 2014, prohibiting entirely the issuance of recommendations or views in relation to stock for which an initial public offering was made within the previous twelve months.

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Definitions:

Empowerment

The process of giving employees autonomy, resources, and capabilities to make decisions and contribute to organizational success.

Confidence

The feeling or belief that one can rely on someone or something; firm trust.

Company's Success

The achievement of key business objectives, often measured by financial performance, market share, or the fulfillment of the organization's mission and vision.

Self-reinforcement

The process through which individuals reward themselves for achieving personal goals or performing well.