Question

The Securities Exchange Act of 1934 required that all pubLiCly traded firms with at least _____ file quarterly and annual financial reports with the Securities and Exchange Commission (SEC).

1) $10 million in assets
2) $5 million in assets
3) $1 million in assets
4) $500,000 in assets

Answer 1

Publicly traded firms with at least $10 million in assets are required to file quarterly and annual financial reports with the SEC.

Step-by-step explanation:

The Securities Exchange Act of 1934 requires that all publicly traded firms must file quarterly and annual financial reports with the Securities and Exchange Commission (SEC) if they have at least $10 million in assets and more than 500 shareholders. This regulation helps ensure transparency and accountability for companies whose securities are traded on the public market, thus protecting investors and maintaining the integrity of the financial system. Firms with less than $10 million in assets might still have to file reports under certain conditions, but this is the threshold specified in the Act for mandatory reporting.