Question

Which of the following factors, by itself, requires a corporation to comply with the reporting requirements of the Securities Exchange Act of 1934?
a.Total assets of $2 million.
b.Six hundred employees.
c.Four hundred holders of equity securities.
d.Shares listed on a national securities exchange.

Answer 1

Answer:

d.Shares listed on a national securities exchange.

Explanation:

The primary purpose of enacting the securities exchange act of 1934 was to regulate securities and transactions in the financial or money markets. The act ensures fairness in financial dealings, thereby creating investor confidence.

For it to achieve its objectives, the securities exchange act contains mandatory disclosure requirements that ensure investors have access to relevant and accurate information to make decisions. The disclosures have to be made at crucial times to aid in investment decisions. All companies listed in the stock exchange are required to abide by the requirements of the exchange act.