The Securities and Exchange Commission Decides to Create a New

question 37

Multiple Choice

The Securities and Exchange Commission decides to create a new rule relating to the dissemination of material nonpublic information through corporate Web sites. The first step is

• A) compile the rule with others in the Code of Federal Regulations.
• B) conduct an on-site inspection.
• C) publish a notice of the proposed rulemaking.
• D) solicit public comment.

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Definitions:

External Costs

Costs that are not borne by the parties involved in an economic transaction, often affecting third parties who did not choose to incur that cost.

Marginal Cost

The charge for producing one more unit of a product or service.

Marginal Benefit

Marginal benefit is the additional satisfaction or value a consumer derives from consuming one more unit of a good or service.

Inadequate Information

A situation where the available data is insufficient or missing, leading to uncertainty in decision-making or analysis.