Which of the Following Is NOT a Function of the Securities

question 34

Multiple Choice

Which of the following is NOT a function of the Securities and Exchange Commission?

• A) It requires companies to disclose information about the stocks and bonds that they are selling.
• B) It informs buyers of investment risks.
• C) It protects the confidentiality of all sales of stocks and bonds.
• D) It protects investors against fraud.
• E) It helps the government promote reliable access to new investments through its regulation of financial markets.

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Definitions:

Cumulative

Referring to the total amount accumulated over time, often used in the context of dividends, earnings, or effects that are added together continuously.

Nonparticipating

A term often used in insurance to describe policies that do not grant the policyholder dividends from the insurer's profits.

Dividends in Arrears

Unpaid dividends on cumulative preferred stock that must be paid out before any dividends can be distributed to common shareholders.

Retained Earnings

The portion of net income that is retained by the company rather than distributed to its owners as dividends.