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When a registration statement is filed, the SEC

a. takes responsibility for the information contained in the registration statement.
b. is responsible for making sure the information complies with all applicable regulations.
c. evaluates the quality of the investment.
d. ensures full and fair disclosure of relevant financial information.

1 Answer

2 votes

Final answer:

The SEC ensures full and fair disclosure of financial information when a registration statement is filed, and ensures compliance with applicable regulations but does not take responsibility for the content or evaluate the investment's quality. The correct option is b. is responsible for making sure the information complies with all applicable regulations.

Step-by-step explanation:

When a registration statement is filed, the Securities and Exchange Commission (SEC) ensures full and fair disclosure of relevant financial information.

The SEC does not take responsibility for the information contained in the registration statement, nor does it evaluate the quality of the investment.

However, it is responsible for making sure that the information complies with all applicable regulations, which means that the disclosure meets the legal requirements and standards for transparency and comprehensiveness.

This oversight is part of the SEC's broader role to regulate and supervise the sale of securities and to ensure that banks and bank holding companies are in compliance with consumer protection laws. The correct option is b. is responsible for making sure the information complies with all applicable regulations.

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