Should the SEC have the authority to highlight or bring special attention to certain disclosures made...

Should the SEC have the authority to highlight or bring special attention to certain disclosures made by SEC registrants? Why or why not?

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Expert Solution

Yes, SEC should have the authority to highlight or bring special attention to certain disclosures made by SEC registrants.

The primary reason for this is that SEC, by bringing special attention to certain disclosures, is only attempting to benefit the investors, public and other related parties. Also by bringing special attention to certain disclosures made by SEC registrants SEC is attempting to remove the problems of information asymmetry and ensure that valuable public information is accessible to all.

SEC requires its registrants to provide a detailed disclosure of its financial status and operations. Special attention is usually given to validity of information and cases of misstatements.

Thus SEC should have the authority to highlight or bring special attention to certain disclosures made by SEC registrants. This will help in ensuring that awareness is created among investors and that information is not asymmetrical.

ekkarill92 answered 1 year ago

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