Which of the following statements about the Securities and Exchange Commission (SEC) is false?
A) The SEC assesses the investment quality of securities issued by the companies that it regulates and prohibits the sale of highly speculative securities.
B) Congress established the SEC to deter abusive accounting and financial reporting practices that contributed to the 1929 stock market collapse.
C) Entities that sell their securities on an interstate basis are known as "publicly owned entities."
D) The SEC closely monitors the accounting profession's rule-making processes and has the authority to override any new rules issued by the FASB to the extent that those rules apply to publicly owned entities.
E) The SEC ensures that publicly owned companies provide third parties with sufficient information to make informed economic decisions regarding the securities these firms sell.

Question

Quizplus · Accepted Answer

The SEC does not assess the investment quality of securities or prohibit the sale of highly speculative securities. Its role is to ensure transparency, fairness, and integrity in the market by requiring public companies to disclose important financial information.

Which of the Following Statements About the Securities and Exchange