In order to limit the use of a shell company, the SEC has proposed:

Question

Quizplus · Accepted Answer

Greater financial disclosures would increase transparency and accountability of shell companies, making it more difficult for them to engage in fraudulent activities. Eliminating shell companies altogether or arresting their promoters may be unrealistic or difficult to enforce. Allowing only foreign sales of the company's stock would not necessarily address the issue of shell companies operating within the United States.

In Order to Limit the Use of a Shell Company