Asked by Lourdes Orellana on Jun 10, 2024
Verified
All of the following are true regarding disclosure except for:
A) SEC regulates the information provided by companies about their operations and executives to ensure full disclosure.
B) Investors must be provided with full and accurate information about the companies and the people behind the stocks that are for sale.
C) Companies must offer their securities for sale at a fair and reasonable price.
D) None of the above
Full Disclosure
Full disclosure is a policy requiring companies to provide all relevant, material information about their operations, financial condition, and management to investors and stakeholders.
SEC
The United States Securities and Exchange Commission is a federal body tasked with overseeing the securities market and safeguarding investors.
Fair Price
The equilibrium price for a good or service in the market where the quantity supplied equals the quantity demanded.
- Recognize the role and regulations of the Securities and Exchange Commission (SEC) in ensuring fair disclosure and transparency in financial markets.
Verified Answer
CO
Cesilia OrtizJun 16, 2024
Final Answer :
C
Explanation :
Disclosure does not require companies to offer their securities for sale at a specific price, but rather to provide accurate and complete information about their operations and executives to potential investors. The fair and reasonable price of securities is determined by the market.
Learning Objectives
- Recognize the role and regulations of the Securities and Exchange Commission (SEC) in ensuring fair disclosure and transparency in financial markets.