Asked by Morgan Whittle on May 06, 2024
Verified
Any time an investor accumulates more than 5% of a company's outstanding stock,the SEC requires reports.
Investor
An individual or entity that allocates capital with the expectation of receiving financial returns, often through the purchase of stocks, bonds, or other investment vehicles.
Outstanding Stock
The total shares of a company that are currently owned by all its shareholders, including share blocks held by institutional investors and restricted shares owned by the company’s officers and insiders.
SEC
The U.S. Securities and Exchange Commission (SEC) is an independent federal government agency responsible for protecting investors, maintaining fair and orderly functioning of the securities markets, and facilitating capital formation.
- Comprehend the regulatory structure of United States financial markets and the functions of federal and state governments within this context.
Verified Answer
CB
Carissa BuenoMay 08, 2024
Final Answer :
True
Explanation :
The SEC requires investors who acquire more than 5% of a company's outstanding stock to file reports, specifically Schedule 13D or 13G, to disclose their holdings and intentions, enhancing transparency and monitoring for potential market manipulation or takeover attempts.
Learning Objectives
- Comprehend the regulatory structure of United States financial markets and the functions of federal and state governments within this context.