Question

What is the purpose of SEC Rule Regulation M?

a) To prevent market manipulation
b) To reduce tax liabilities
c) To promote insider trading
d) To regulate advertising

Answer 1

SEC Rule Regulation M is designed to prevent market manipulation and ensure fair and orderly trading in the securities market. The correct option is a.

Step-by-step explanation:

The purpose of SEC Rule Regulation M is to prevent market manipulation. Regulation M was implemented by the U.S. Securities and Exchange Commission (SEC) to ensure fair and orderly trading in the securities market.

Market manipulation refers to any activity that artificially influences the supply or demand for a security in order to create an unfair advantage. This can include actions like spreading false information, creating artificial trading activity, or engaging in insider trading.

By regulating market manipulation, Regulation M helps to maintain the integrity of the securities market, protect investors, and promote a level playing field for all participants. The correct option is a.