Identify the Regulation That Created an Entity Which Insures Investors

question 44

Multiple Choice

Identify the regulation that created an entity which insures investors from possible losses if an investment house enters bankruptcy.

• A) Federal Deposit Insurance Protection Act
• B) Securities Investor Protection Act
• C) Investment Advisers Act
• D) Federal Bankruptcy Acts

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Definitions:

Credit Balance

A credit balance refers to the amount of money in a financial repository or accounting record that is available for withdrawal or use, often indicating a surplus or funds owed to the account holder.

Consolidated Retained Earnings

The cumulative amount of net income earned by a parent company and its subsidiaries, not distributed as dividends.

Common Stock

Equity securities that represent ownership in a company, granting holders voting rights and a share in the company's profits through dividends.

Acquisition

The process by which a company purchases most or all of another firm's shares to take control of that company.