The SEC Attempts to Control Insider Trading in Part By

question 58

Multiple Choice

The SEC attempts to control insider trading in part by:

• A) Prohibiting officers and directors from buying stock of the company they work for/oversee
• B) Prohibiting shareholders from buying stock of affiliated companies
• C) Requiring officers, directors, and shareholders owning 10 percent of the class of equity securities registered with the SEC to file reports concerning their ownership and trading of the corporations securities
• D) All of these

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Definitions:

Yield To Maturity

The total return anticipated on a bond if the bond is held until it matures, accounting for its current market price, par value, coupon interest rate, and time to maturity.

Current Yields

The annual income (interest or dividends) from an investment divided by the current price of the security, expressed as a percentage.

Par Value

The nominal or face value of a bond, share of stock, or other financial instruments, as stated by the issuing company.

Yield To Maturity

The total return anticipated on a bond if the bond is held until the date of its maturity, considering all payments from the time of purchase to maturity.