Question

In order to avoid insider trading, the SEC (Securities and Exchange Commission) has adopted a new rule called _____________ that requires publicly traded companies to release information to everyone in a timely manner, rather than just to a few persons.
A. Insider Trading Phenomenon
B. Regulation FD (Fair Disclosure)
C. Red Herring Regulation
D. PDI (Public Display of Information Act)

Answer 1

Answer:

B. Regulation FD (Fair Disclosure)

Explanation:

Regulation Fair disclosure bound the companies to release information to selected players in the market. All the information is provided to all the relevant players for the purpose of fair trading.