The Private Securities Litigation Reform Act of 1995 Gives the Securities

question 65

True/False

The Private Securities Litigation Reform Act of 1995 gives the Securities and Exchange Commission cease-and-desist powers and the power to impose substantial monetary penalties in administrative proceedings.

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Definitions:

Corporate Policy

Guidelines and rules established by a company to govern its activities and decisions, reflecting its culture and objectives.

Business Judgment Rule

A legal principle that protects corporate directors and officers from liability for decisions made in good faith which they believed to be in the best interest of the company.

Duty of Diligence

The obligation of a person or entity to exercise reasonable care and attention in carrying out tasks and responsibilities.

Corporate Records

Official documents that corporations are legally required to maintain, including information on business activities, financial performance, and legal obligations.