The Securities and Exchange Commission Was Established to Give the Investor

question 177

True/False

The Securities and Exchange Commission was established to give the investor the support of a state regulatory agency that enforces both reporting and disclosure requirements of companies whose stocks are publicly traded.

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Definitions:

Truth-in-Lending Act

A U.S. federal law designed to promote informed use of consumer credit by requiring disclosures about its terms and cost.

Unauthorized Charges

Expenses made to a credit card, bank account, or other financial account without the account holder’s approval or knowledge.

Credit Card

A payment card issued by financial institutions allowing the cardholder to borrow funds for purchases or cash advances.

Strict Product Liability

A legal doctrine that makes a manufacturer, distributor, or seller of a defective product liable for the damages caused by that product, regardless of fault.