​ Assume a Price Floor Is Set Above the Equilibrium

question 157

True/False

​ Assume a price floor is set above the equilibrium price. The result is a shortage.

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Definitions:

SEC

Stands for the Securities and Exchange Commission, a U.S. federal agency responsible for regulating the securities industry and ensuring fair and efficient markets.

Waiting Period

In securities registration, the period between the time an issuer files a registration statement and prospectus with the SEC requesting to offer a security and the time the offer is approved by the SEC, which is a minimum of 20 days.

Registration Statement

A legal document filed with regulatory authorities providing essential details about an investment offering to the public, ensuring transparency and compliance with securities laws.

Prospectus

A legal document issued by companies that are offering securities for sale, providing potential investors with details about the investment.