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SEC. 408.
ENHANCED REVIEW OF PERIODIC DISCLOSURES BY
ISSUERS.
(a) REGULAR AND
SYSTEMATIC REVIEW.—The Commission
shall
review
disclosures made by issuers reporting under
section 13(a)
of the
Securities Exchange Act of 1934 (including
reports filed
on Form
10–K), and which have a class of securities
listed on
a national
securities exchange or traded on an automated
quotation
facility of a
national securities association, on a regular
and systematic
basis for the
protection of investors. Such review shall
include
a review of
an issuer’s financial statement.
(b) REVIEW CRITERIA.—For
purposes of scheduling the reviews
required by
subsection (a), the Commission shall consider,
among
other
factors—
(1) issuers
that have issued material restatements of
financial
results;
(2) issuers
that experience significant volatility in
their
stock price
as compared to other issuers;
(3) issuers
with the largest market capitalization;
(4) emerging
companies with disparities in price to earning
ratios;
(5) issuers
whose operations significantly affect any
material
sector of the
economy; and
(6) any other
factors that the Commission may consider
relevant.
(c) MINIMUM REVIEW
PERIOD.—In no event shall an issuer
required to
file reports under section 13(a) or 15(d) of
the Securities
Exchange Act
of 1934 be reviewed under this section less
frequently
than once
every 3 years.
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