The Freedom of Information Act

question 35

Multiple Choice

The Freedom of Information Act:

• A) is to be strictly construed to prevent unauthorized disclosures.
• B) has too many exemptions to be useful.
• C) is intended to subject agency action to public scrutiny.
• D) puts the burden of proof upon the person requesting the information.

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Definitions:

Registration Statement

A set of documents, including a prospectus, filed with a regulatory body like the SEC by companies wishing to issue public shares.

Material Misstatements

False or inaccurate statements that are significant enough to impact an investor's or decision-maker's judgment.

SEC Rule 504

SEC Rule 504 of Regulation D allows certain small businesses to offer and sell up to $5 million of their securities in any 12-month period without having to register the securities with the SEC.

Federal Securities Regulation

Federal securities regulation consists of U.S. laws and rules that regulate the creation, registration, purchase, and sale of securities, aimed at protecting investors and ensuring market integrity.