The Securities Exchange Act of 1934 sets specific requirements for publicly traded firms to disclose their financial information with the Securities and Exchange Commission (SEC). According to these requirements:
1. The firm must have a certain minimum number of shareholders.
2. The firm must possess assets valued at a certain minimum amount.
Based on the provided requirements:
1. The firm must have at least 500 shareholders.
2. The firm must have at least [tex]$10 million in assets.
Upon reviewing the different options provided:
- 200 shareholders; $[/tex]20 million
- 250 shareholders; [tex]$15 million
- 100 shareholders; $[/tex]10 million
- 500 shareholders; [tex]$10 million
We can determine that the correct answer, which meets both the criteria stated above, is:
500 shareholders; $[/tex]10 million
Therefore, publicly traded firms with at least 500 shareholders and $10 million in assets are required to file quarterly and annual financial reports with the SEC.
