In the context of the Securities Exchange Act of 1934, what is required from corporations involved in trading?

In the context of the Securities Exchange Act of 1934, what is required from corporations involved in trading?

• A. Periodic disclosure of their financials
• B. To avoid international transactions
• C. To freeze asset values annually
• D. To limit shareholder numbers

Answer: (A)

The requirement for corporations involved in trading under the Securities Exchange Act of 1934 is the periodic disclosure of their financials. This legislation was established to promote transparency in the financial markets and protect investors by ensuring that they have access to current, accurate financial information about publicly traded companies. The Act mandates that these corporations file regular reports, such as quarterly and annual financial statements, which provide insights into their financial health, including income, assets, liabilities, and cash flow. This transparency helps investors make informed decisions, contributing to the overall integrity of the capital markets. The other options do not align with the requirements set forth by the Securities Exchange Act of 1934. For instance, avoiding international transactions is not a requirement, as many companies engage in global business. Similarly, there is no mandated need to freeze asset values annually or limit shareholder numbers; the Act focuses on disclosure and reporting obligations to ensure that all investors have equal access to relevant financial information.

The requirement for corporations involved in trading under the Securities Exchange Act of 1934 is the periodic disclosure of their financials. This legislation was established to promote transparency in the financial markets and protect investors by ensuring that they have access to current, accurate financial information about publicly traded companies.

The Act mandates that these corporations file regular reports, such as quarterly and annual financial statements, which provide insights into their financial health, including income, assets, liabilities, and cash flow. This transparency helps investors make informed decisions, contributing to the overall integrity of the capital markets.

The other options do not align with the requirements set forth by the Securities Exchange Act of 1934. For instance, avoiding international transactions is not a requirement, as many companies engage in global business. Similarly, there is no mandated need to freeze asset values annually or limit shareholder numbers; the Act focuses on disclosure and reporting obligations to ensure that all investors have equal access to relevant financial information.