Final answer:
SEC rule 17f-2 requires fingerprinting of all officers, directors, sales employees, and persons who handle cash, securities, or maintain the books and records of original entry. It aims to prevent financial fraud and embezzlement within companies regulated by the SEC.
Step-by-step explanation:
The SEC rule 17f-2 requires that all officers, directors, sales employees, as well as all persons who handle cash, securities, and the books and records of original entry be fingerprinted. This provision is aimed at preventing fraud and embezzlement by ensuring that all individuals who have access to the financial assets and records of a company are properly identified and their fingerprints are on file. This rule applies specifically to broker-dealers and other entities registered with the SEC. By maintaining these fingerprints on file, it assists in keeping the financial markets secure by aiding in the quick identification of individuals involved in unethical or illegal activities.