Finance

Under the Securities Exchange Act of 1934, Congress created the Securi

Under the Securities Exchange Act of 1934, Congress created the Securities and Exchange Commission (the ‘SEC’). The SEC’s mission is to administer federal securities laws and issue rules and regulations to provide protection for investors and to ensure that the securities markets are fair and honest. This is accomplished primarily by: a. creating a national […]

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Date: September 19th, 2020

Means by which the securities markets serve to mitigate principal-agen

Means by which the securities markets serve to mitigate principal-agent or information asymmetry problems include all of the following EXCEPT: a. Management realizes that its reputation with investors is valuable, and can be sustained only if accurate information is provided on a timely basis. b. Various market mechanisms exist to discipline a firm’s management, and […]

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Date: September 19th, 2020

Fully depreciated assets have a positive book value, and so any procee

Fully depreciated assets have a positive book value, and so any proceeds from sale at disposal are taxable gains. Indicate whether the statement is true or false.     ANSWER Answer: FALSE Explanation: Fully depreciated assets have A BOOK VALUE OF ZERO, and so any proceeds from sale at disposal are taxable gains.

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Date: September 19th, 2020