Which of the Following Statements Is True of Securities Regulation

question 25

Multiple Choice

Which of the following statements is true of securities regulation?

• A) The Securities Exchange Act of 1934 requires periodic disclosures from issuers of securities.
• B) The 1933 Act regulates the sale of securities while they are passing from the hands of the issuer into the hands of the private investors.
• C) The Securities and Exchange Commission was created by the 1933 Act.
• D) Unlike other federal administrative agencies, the Securities and Exchange Commission has only legislative functions.

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Definitions:

Purchases Account

An account used in the accounting for all goods bought for resale or for use in the production process.

Net Income

The total earnings of a company after subtracting all expenses from revenues, including taxes and interest, showcasing the company's financial performance over a specific period.

Operating Expenses

Expenses related to the day-to-day functions of a business outside of cost of goods sold.

Gross Profit

Gross Profit is the financial metric representing the difference between revenue and the cost of goods sold (COGS), before deducting overheads, payroll, taxation, and interest payments.