Anna is a stockbroker for Bank of Bux. A client who works at Game Guys, Ltd., just called to purchase thousands of shares of Game Guys' company's stock. He reveals to her that the company is soon announcing the appointment of a new superstar CEO. Anna asks her client if this information is public knowledge. The reason she asks is to make certain that her client, her company, and she remain in compliance with Regulation FD, the fair disclosure rule.

Question

Quizplus · Accepted Answer

The Securities and Exchange Commission, the organization that monitors all publicly traded companies, created Regulation FD, the fair disclosure rule, which says that companies that release any information must share it with everyone, and not just a few. Everyone has the same opportunity to use the information to make financial decisions.

Anna Is a Stockbroker for Bank of Bux