Question

In order to avoid insider trading, the SEC (Securities and Exchange Commission) has adopted a new rule called ________ that requires publicly traded companies to release information to everyone in a timely manner, rather than just to a few persons.

Answer 1

Answer:

The correct answer to the following question is Regulation fair disclosure .

Explanation:

To stop insider trading SEC ( Securities exchange commission ) has passed a rule called regulation fair disclosure , where the SEC prohibits the companies to disclose important information to some selective shareholders or any other professionals . Here SEC says that if a publicly trading company does provide some confidential information to certain people, then that company has to disclose that information to the public.