Which of the Following Is a Reason Congress Passed the Private

question 14

Multiple Choice

Which of the following is a reason Congress passed the Private Securities Litigation Reform Act of 1995?

• A) To provide protection to companies who issue forecasts of earnings.
• B) To provide stronger penalties against companies who issue forecasts of earnings that turn out to be wrong.
• C) To provide stronger penalties against insiders who trade on forecasts of earnings.
• D) To provide protection to insiders who trade on forecasts of earnings.
• E) To provide protection to companies who issued forecasts of earnings and also to provide protection to insiders who trade on such forecasts.

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Definitions:

Oligopoly Environment

A market structure dominated by a small number of large firms, leading to limited competition and high barriers to entry.

Monopoly Environment

A market structure where a single firm dominates the production and sale of a particular product or service.

Hypercompetition Environment

A market condition characterized by rapid changes, intense competition, and strategic challenges among firms.

Strategic Intent

Strategic intent focuses and applies organisational energies on a unifying and compelling goal.