Self-Regulation Stock Exchanges - SS2 Accounting Past Questions and Answers - page 1
What is self-regulation by stock exchanges?
A system where the exchange sets and enforces its own rules and regulations
A system where the government sets and enforces rules and regulations
A system where investors set and enforce their own rules and regulations
What is the purpose of self-regulation by stock exchanges?
To promote transparency, fairness, and integrity in the marketplace
To eliminate competition among stock exchanges
To reduce the costs of government regulation
What authority do stock exchanges typically have under a self-regulatory system?
The authority to set their own listing standards, trading rules, and disciplinary procedures
The authority to set interest rates
The authority to print money
What is one advantage of self-regulation by stock exchanges?
Greater flexibility and responsiveness than traditional government regulation
Less regulation and oversight than traditional government regulation
More biased and discriminatory rules than traditional government regulation
What is one potential drawback of self-regulation by stock exchanges?
The potential for conflicts of interest and lack of effective protection of the public interest
The potential for excessive government interference and oversight
The potential for excessive bureaucracy and red tape
How does self-regulation by stock exchanges differ from traditional government regulation?
Self-regulation by stock exchanges is a system where the exchange sets and enforces its own rules and regulations, while traditional government regulation is a system where the government sets and enforces rules and regulations.
What are some key factors that can help ensure that self-regulatory bodies operate in the public interest?
Some key factors that can help ensure that self-regulatory bodies operate in the public interest include strong governance structures, independent oversight, and clear accountability mechanisms.