a. show profits before they can sell stock
The correct answer is: b. give investors important information.
Most businesses that raise money from the public must register with the SEC or the states and publicly report important information about their businesses on a regular basis. Federal and state laws protect you by requiring that
- the people who seek your investment dollars must tell you the truth about their businesses, and
- the people who sell securities must be licensed and treat you fairly and honestly, putting your interests first.
Question 10, Answer a