Which Item Below Is Not True of the Securities and Exchange

question 17

Multiple Choice

Which item below is not true of the Securities and Exchange Commission?

• A)It insures investors against losses from fraud or theft.
• B)It was created by federal government.
• C)It approves securities for sale in financial markets.
• D)It requires that potential securities buyers be provided prospectuses.

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Definitions:

Put Option

An agreement in finance that allows the owner to sell a certain quantity of a basic asset at an agreed-upon price before a certain deadline, without being required to do so.

Financial Risk Exposure

represents the potential for financial loss that a company faces due to its financial decisions and market conditions, including changes in interest rates, currency exchange rates, and credit risks.

Citrus Grower

A citrus grower is an individual or company engaged in the cultivation and production of citrus fruits, such as oranges, lemons, limes, and grapefruits.

Clothing Manufacturer

A business specialized in producing clothing items, from the design phase through to the final production.