Securities and Exchange Commission (SEC) Rules Prohibit the Listing of the Stock

question 329

True/False

Securities and Exchange Commission (SEC) rules prohibit the listing of the stock of foreign firms on U.S. stock exchanges.

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Definitions:

Fraud in the Inducement

A deceitful act causing someone to enter into an agreement or contract by misrepresenting material facts or intentions.

Holder in Due Course

A party in possession of a negotiable instrument, such as a check or promissory note, acquired in good faith and thus protected against many defenses.

Negotiable Instrument

An official document certifying the payment of a particular sum of cash, either to be paid on demand or at an agreed-upon time, with the payer's name mentioned in the document.

Good Faith

The honest intention to act without taking an unfair advantage over another party, typically implied in agreements and transactions to ensure fairness and integrity.