ECONOMICS
SAVING AND INVESTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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guaranteeing the value of certain stocks
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insuring the amounts of people’s investments
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requiring companies to disclose financial information
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helping investors diversify their portfolios
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Detailed explanation-1: -We protect investors by vigorously enforcing the federal securities laws to hold wrongdoers accountable and deter future misconduct. We provide investor education and resources through our Office of Investor Education and Advocacy.
Detailed explanation-2: -Federal regulations require the disclosure of all relevant financial information by publicly-listed companies. In addition to financial data, companies are required to reveal their analysis of their strengths, weaknesses, opportunities, and threats.
Detailed explanation-3: -SEC regulations require that annual reports to stockholders contain certified financial statements and other specific items. The certified financial statement must include a two-year audited balance sheet and a three-year audited statement of income and cash flows.
Detailed explanation-4: -Regulation Fair Disclosure (Reg FD) was implemented in October 2000 to stop companies from selectively disclosing important information to market professionals and certain shareholders. The goal of Reg FD was to level the playing field for all investors and prevent a loss of confidence in the markets.