The Securities Act of 1934 Imposes Sanctions for Noncompliance with Its

question 52

Multiple Choice

The Securities Act of 1934 imposes sanctions for noncompliance with its disclosure and antifraud requirements. These sanctions include:

• A) civil liability to injured investors and issuers.
• B) civil penalties.
• C) criminal penalties.
• D) All of these.

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Definitions:

Cash Inflows

Funds entering a business or project, typically received through sales, investments, or financing.

Cash Outflows

Money spent or costs incurred by a business or individual, resulting in a decrease in cash assets.

Internal Rate

Internal rate usually refers to the internal rate of return (IRR), a financial metric used to assess the profitability of investments by calculating the interest rate that makes the net present value (NPV) of all cash flows from a particular project or investment equal to zero.

Accept

In financial terms, it often refers to a bank's agreement to honor a draft or other financial instrument payable at a future date.