SIE practice questionhardReporting Requirements
Under the Securities Exchange Act of 1934, which event must be promptly reported to the SEC?
- AAll retail client purchase orders
- BMaterial changes in a public company’s financial condition✓ Correct answer
- CEach individual margin call to customers
- DEconomic indicator releases
Explanation
Why B — Material changes in a public company’s financial condition
The '34 Act mandates reporting of material events, such as significant changes in financial condition. Retail orders (B), margin calls (C), and indicator releases (D) are not reported to the SEC as material events.
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