Final answer:
A high standard of conduct under securities legislation is exemplified by the board of directors actively overseeing corporate executives, ensuring financial transparency, and hiring external auditors to certify financial records.
Step-by-step explanation:
The statement that best provides an example of a practice that observes a high standard of conduct under securities legislation is one that involves the board of directors providing effective governance and oversight for a company's top executives. The board is tasked with ensuring that the company adheres to legal standards and operates in the best interest of its shareholders. This includes hiring an external auditing firm to review financial records and certify their accuracy, as well as providing transparency to outside investors, which can include large shareholders from mutual or pension funds. These practices are all in accordance with actions regulating and supervising the sale of securities and ensuring truthful disclosure, as mandated by the Federal Securities Act and overseen by the Securities and Exchange Commission.