Which of the Following Is a Reason Congress Passed the Private

question 41

Multiple Choice

Which of the following is a reason Congress passed the Private Securities Litigation Reform Act of 1995?

• A) To provide protection to companies who issue forecasts of earnings.
• B) To provide stronger penalties against companies who issue forecasts of earnings that turn out to be wrong.
• C) To provide stronger penalties against insiders who trade on forecasts of earnings.
• D) To provide protection to insiders who trade on forecasts of earnings.
• E) To provide protection to accredited investors who trade on insider information.

---

Definitions:

Inattentional Blindness

A psychological lack of attention that is not associated with any vision defects or deficits, where an individual fails to perceive an unexpected stimulus that is in plain sight when other attention-demanding tasks are being performed.

Daydreaming

A mild, self-generated form of detachment from immediate surroundings, characterized by a person's drift of attention away from the task at hand.

Dreaming

A series of thoughts, images, and sensations occurring in a person's mind during sleep, often reflecting unconscious material.

Drowsiness

A state of feeling sleepy or being on the verge of falling asleep.