In Order to Avoid Insider Trading, the SEC (Securities and Exchange

question 162

Multiple Choice

In order to avoid insider trading, the SEC (Securities and Exchange Commission) has adopted a new rule called ________ that requires publicly traded companies to release information to everyone in a timely manner, rather than just to a few persons.

• A) Insider Trading Phenomenon
• B) Regulation FD (Fair Disclosure)
• C) Red Herring Regulation
• D) PDI (Public Display of Information Act)

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Definitions:

Indemnity

A primary obligation of a third party to pay a debt along with the debtor

Subrogation

The right of the insurer upon payment to take over the rights of the insured in relation to whoever caused the injury.

Guarantor

A person assuming obligation to pay if the debtor does not.

Real Property

Land, buildings attached to the land, and items called fixtures, that is, items that are attached to the land or to a building or to another fixture attached to the land.