The 1934 act gives the Securities and Exchange Commission (SEC) the power to require companies with publicly traded securities to prepare periodic financial statements for distribution to investors and creditors.

Question

Quizplus · Accepted Answer

The 1934 act, also known as the Securities Exchange Act, indeed empowers the SEC to require companies with publicly traded securities to file financial statements on a regular basis, such as quarterly and annually. This is aimed at promoting transparency and providing investors and creditors with the necessary information to make informed decisions.

The 1934 Act Gives the Securities and Exchange Commission (SEC)