Asked by Latishia Brodie on Jun 24, 2024
Verified
The federal government leaves corporate stock regulation to the states since corporations are state-created entities.
Corporate Stock Regulation
Rules and guidelines set by authorities governing the issuance, transfer, and trading of shares of a corporation.
Federal Government
The national government of a federal country that is responsible for areas of governance assigned to it by the constitution, distinct from state or provincial governments.
- Learn the basics of corporate stock regulation and the role of federal and state governments in it.
Verified Answer
JA
Jeffrey AtkinsonJun 25, 2024
Final Answer :
False
Explanation :
The federal government, through the Securities and Exchange Commission (SEC), plays a significant role in regulating corporate stock to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation. This is in addition to the state-level regulations where corporations are incorporated.
Learning Objectives
- Learn the basics of corporate stock regulation and the role of federal and state governments in it.