The Securities and Exchange Commission (SEC) was established in1934 to help regulate the U.S. securities market. Which of the following statements is true concerning the SEC?
A) The SEC prohibits the sale of speculative securities.
B) The SEC regulates only securities offered for public sale.
C) Registration with the SEC guarantees the accuracy of the registrant's prospectus.
D) The SEC's initial influence and authority has diminished in recent years as the stock exchanges have become more organized and better able to police themselves.

Question

Quizplus · Accepted Answer

The SEC does not prohibit the sale of speculative securities, nor does it guarantee the accuracy of a registrant's prospectus. Its influence and authority have not diminished; rather, it continues to play a crucial role in regulating the securities market. The SEC's primary function includes regulating securities offered for public sale, ensuring transparency, and maintaining fair trading practices.

The Securities and Exchange Commission (SEC) Was Established In1934 to Help