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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.


Definitions:

Rate of Return

The increase or decrease in the value of an investment during a set time frame, represented as a percentage.

Nominal Rate

Refers to the interest rate stated on a loan or investment agreement before any inflation adjustment or compounding effect.

Term of Loan

The period over which a loan agreement is in effect, at the end of which the loan must be repaid in full.

Nominal Rate

The stated interest rate on a loan or financial product, not accounting for inflation or compounding effects.

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