Securities and Exchange Commission (SEC)works Hard to Prevent Unscrupulous Companies

question 33

Multiple Choice

Securities and Exchange Commission (SEC) works hard to prevent unscrupulous companies from "cooking" their books to paint investors and regulators a better financial picture than they really have.Yet,in the end,it is up to investors to research the companies in which they want to invest because __________ is the norm when investing in the stock market.

• A) modus operandi
• B) caveat emptor
• C) de facto marketing
• D) cest la vie
• E) anguis in herba

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Definitions:

Bystander Effect

The social psychological phenomenon that individuals are less likely to offer help to a victim when other people are present, often due to the diffusion of responsibility.

Attribution of Arousal Theory

A psychological principle suggesting that people make sense of their emotional or physiological states by attributing them to environmental or situational cues.

Romantic Love

An emotional state characterized by idealization of the beloved, obsessive thoughts of this person, and turbulent feelings.

Halo Effect

The tendency to assume that people who have one good trait also have other good traits.