Which of the following is true with regard to securities regulation in foreign markets?

Question

Quizplus · Accepted Answer

Anti-fraud provisions of the federal securities laws apply extraterritorially where there is conduct in the U.S. relating to a violation of those laws. This means that if a foreign issuer conducts fraudulent activities in the U.S., they are subject to enforcement action by U.S. regulators.

Option B and C are incorrect. Foreign issuers who issue securities in the U.S. are required to comply with registration and disclosure requirements, unless an exemption from registration is available. The act of state doctrine is not relevant in this context, as it pertains to the principle that one state should not interfere with the internal affairs or actions of another state.

Which of the Following Is True with Regard to Securities