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)

---

Definitions:

Experience

The knowledge or practical wisdom gained from direct participation in events or activities.

Pragmatics

The branch of linguistics that studies how context influences the interpretation of meaning in language use and communication.

Metacognitive Aspects

refer to the components related to one's awareness, understanding, and regulation of their own cognitive processes, including planning, monitoring, and evaluating.

Social Interaction

The dynamic process through which people communicate, influence, and relate to each other within a social context.