True or False?

1. Regulation Fair Disclosure adopted by the Securities and Exchange Commission requires companies to release material information to the public, rather than to reveal such information selectively.

2. A proxy is permission by a shareholder to another person to vote his or her shares in the manner he or she instructs.

3. An action commenced by the Securities and Exchange Commission is a private action and the parties are not exposed to publicity.

4. It is illegal for an "insider" to trade on inside information until that information has been released to the public and the stock price has had time to adjust to the new information.

5. When investors establish accounts with investment firms or stockbrokers, they usually sign a standard form that provides that disputes must be arbitrated.