How Did the Fallout from the Sharpstown Stock Fraud Scandal

question 40

Multiple Choice

How did the fallout from the Sharpstown stock fraud scandal immediately impact the Texas legislature?

• A) The House moved to limit the speaker's power through a modified seniority system for committee appointments.
• B) Through a public referendum, it was voted that appropriations bills could no longer originate from the Senate.
• C) An executive order was issued by the governor to force all legislators to reveal their personal stock holdings.
• D) The judiciary stepped in and put forth a rule that all legislation concerning the banks had to go through the Texas comptroller.
• E) The governor created a special board comprised of bank industry experts and federal auditors to oversee every bill concerning banks and insurance.

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Definitions:

Income

The monetary payment received for goods or services, or the earnings from investment over a particular period of time.

Equity Financing

The sale of shares of stock in exchange for cash.

Shares Of Stock

Units of ownership interest in a corporation or financial asset, which provide for an equal distribution in any profits, if any are declared, in the form of dividends.

Cash

Physical or digital money in hand or readily available for transactions or use.