The SIPC Provides Protection to the Investor from

question 153

Multiple Choice

The SIPC provides protection to the investor from

• A)declining security prices.
• B)low or missing dividend payments.
• C)brokerage firm failure.
• D)using margin requirements.
• E)none of these.

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Definitions:

Sarbanes-Oxley Act

A U.S. law enacted in 2002 to protect investors by improving the accuracy and reliability of corporate disclosures.

Financial Reporting

The method of generating reports that reveal the financial condition of an organization to its management, investors, and governmental authorities.

Top Executives

are the highest-ranking employees in a company or organization, responsible for making major corporate decisions.

Autocratic Control

Refers to a management style where decision-making powers are centralized in the hands of one individual, with little to no input from subordinates.