Question

The Securities and Exchange Commission decides to create a new rule relating to the dissemination of material nonpublic information through corporate Web sites. The first step is:

a. compile the rule with others in the Code of Federal Regulations.
b. conduct an on-site inspection.
c. publish a notice of the proposed rulemaking.
d. solicit public comment.

Answer 1

c. publish a notice of the proposed rulemaking.

Step-by-step explanation:


Administrative Procedure Act (APA) requires every agency to follow a transparent public process when they decide to create new regulations. This process includes publishing a notice of the proposed rulemaking in the Federal Registry.

The agencies must publish the notice to announce and explain the proposed plan and aims of the new rule. This is done in order to notify the citizens and give them the opportunity to 
submit feedbacks or recommendations before it is implemented.