Question

Public corporations must file reports with ______, the government regulatory agency that regulates securities such as stocks and bonds.

1) Federal Reserve
2) Securities and Exchange Commission
3) Internal Revenue Service
4) Department of Justice

Answer 1

Public corporations must file reports with the Securities and Exchange Commission (SEC), which is option 2) Securities and Exchange Commission. The SEC is an independent regulatory agency tasked with the oversight of the securities industry.

Step-by-step explanation:

Public corporations must file reports with the Securities and Exchange Commission (SEC), the government regulatory agency that regulates securities such as stocks and bonds. This means the correct answer is option 2) Securities and Exchange Commission. The SEC was established following the Federal Securities Act and is responsible for overseeing the securities industry, ensuring that companies provide full and accurate information to investors. Unlike other financial regulatory bodies such as the Federal Reserve, which supervises bank holding companies, or the Internal Revenue Service (IRS), which collects taxes, the SEC specifically focuses on securities and investment. It operates independently of political influence, setting it apart from typical government agencies and allowing it to exert significant authority over the investment industry.