The SEC attempts to control insider trading in part by:
A)Prohibiting officers and directors from buying stock of the company they work for/oversee
B)Prohibiting shareholders from buying stock of affiliated companies
C)Requiring officers, directors, and shareholders owning 10 percent of the class of equity securities registered with the SEC to file reports concerning their ownership and trading of the corporations securities
D)All of the above

Question

Quizplus · Accepted Answer

The SEC requires officers, directors, and shareholders owning 10 percent of the class of equity securities registered with the SEC to file reports concerning their ownership and trading of the corporation's securities. This helps to control insider trading by promoting transparency and accountability. The other options (A and B) are not accurate as officers and directors are allowed to buy stock of the company they work for/oversee as long as they disclose it, and shareholders are allowed to buy stock of affiliated companies as long as they are not insiders with access to non-public information.

The SEC Attempts to Control Insider Trading in Part By