The Securities and Exchange Commission decides to create a new rule relating to the dissemination of material nonpublic information through corporate Web sites. The first step is
A) compile the rule with others in the Code of Federal Regulations.
B) conduct an on-site inspection.
C) publish a notice of the proposed rulemaking.
D) solicit public comment.

Question

Quizplus · Accepted Answer

The first step in the rulemaking process by a federal agency like the SEC is to publish a notice of the proposed rulemaking in the Federal Register, which informs the public of the new rule and invites comments.

The Securities and Exchange Commission Decides to Create a New