§7266 Enhanced Review of Periodic Disclosures by Issuers

Summary

The SEC must regularly check the disclosures and financial statements of companies that file reports like Form 10‑K and whose securities trade on a national exchange or automated quotation system. The checks are done to protect investors. When choosing who to review, the SEC must consider things like companies that restated results, those with large stock-price swings, the biggest companies by market value, growing firms with unusual price-to-earnings ratios, companies that affect major parts of the economy, and any other relevant factors. Each company must be reviewed at least once every 3 years.