The Federal Securities Act and the Securities Exchange Commission Aimed

question 27

Multiple Choice

The Federal Securities Act and the Securities Exchange Commission aimed to

• A) prohibit completely the sale of stocks on margin (i.e. with borrowed funds).
• B) force stockbrokers to register with the federal government.
• C) prevent interlocking directorates and business pyramiding schemes.
• D) provide full disclosure of information and prevent insider trading and other fraudulent practices.
• E) stop the practice of establishing interlocking directorates on America's corporate boards that produced controversial conflicts-of-interest in the governance of American businesses.

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Definitions:

Federal Foundation

An organization created by the federal government or receiving significant funding from it to support public purposes.

Red Tape

A term denoting excessive regulation or rigid conformity to formal rules that is considered unnecessary and bureaucratic, often slowing down or complicating processes.

Popular Democrats

Refers to members or supporters of the Democratic Party who are particularly favored or well-liked by the general public or the party's base.