Sale of new common stock in the primary market is regulated by the ________, and sales of used common on the secondary market is regulated by the ________.
A) SEC; FDIC
B) SEC; SEC
C) FDIC; Federal Reserve
D) Federal Reserve; SEC

Question

Quizplus · Accepted Answer

The Securities and Exchange Commission (SEC) regulates the sale of new common stock in the primary market through the registration process, while the trading of existing shares on the secondary market is also regulated by the SEC through the maintenance of fair trading practices and disclosure requirements. The FDIC and Federal Reserve are regulatory agencies in the banking system and do not have jurisdiction over the sale of stocks.

Sale of New Common Stock in the Primary Market Is