Question

which of the following is regulated by the u.s. securities and exchange commission because the shares of ownership can be traded on public stock exchanges?

a. a limited liability company
b. an acquisition of one single-owner car dealership by another similar firm in a small town
c. a horizontal merger of two private cooperatives
d. a market extension merger between two private universities
e. a publicly owned corporation

Explanation:

The U.S. Securities and Exchange Commission (SEC) regulates entities with shares traded on public stock exchanges. A publicly owned corporation has shares that can be traded publicly, so it falls under SEC regulation. Options A (LLC), B (small dealership acquisition), C (private cooperatives merger), and D (private universities merger) involve private or non - publicly - traded entities, so they are not regulated by the SEC for public stock exchange - related activities.

Answer:

E. A publicly owned corporation