Once Stare Decisis and Case Precedent Is Established

question 31

Multiple Choice

Once stare decisis and case precedent is established:

• A) it may be disregarded and overturned by a court if they deem such action appropriate.
• B) it may not be disregarded by a court but may be overturned by state statute.
• C) it may not be disregarded by a court or be overturned by state statute but may only be changed by amendment to the state's constitution.
• D) it may not be disregarded or overturned once established and must be followed without exception

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Definitions:

SEC

The Securities and Exchange Commission, a U.S. government agency responsible for enforcing federal securities laws and regulating the securities industry.

Securities Act of 1934

A U.S. law enacted to regulate the secondary trading of securities (stocks, bonds, etc.), establishing rules and procedures to prevent fraud and manipulation.

Underwriting

Underwriters (investment bankers) purchase securities from the issuing company and resell them. Usually, a syndicate of investment bankers is organized behind a lead firm.

Investment Banking

A sector of banking focused on helping individuals, corporations, and governments raise capital through underwriting or acting as the client's agent in issuing securities.