The Idea Behind the Disclosure Provisions Contained in Federal Securities

question 380

Multiple Choice

The idea behind the disclosure provisions contained in federal securities law is that:

• A) investors will not collect information about securities unless the government makes the information available
• B) investors need sufficient and accurate information on material facts concerning securities they might buy
• C) securities are generally overvalued in the absence of such information
• D) the sellers of stock will rarely disclose financial data without the disclosure requirement
• E) all of the other choices

---

Definitions:

Database

An organized collection of structured information, or data, typically stored electronically in a computer system.

Personal Attack

A communication strategy where an argument is rebutted by attacking the character, motive, or other attribute of the person making the argument, rather than addressing the substance of the argument itself.

Permanent Break

A cessation or end of a situation, relationship, or agreement that is intended to last indefinitely, with no expectation of resumption.

Improvement Opportunity

A situation or instance that can be modified or enhanced to increase efficiency, effectiveness, or satisfaction.