What does the term "reporting issuer" refer to?

• A. A company with no public securities
• B. A corporation issuing recurring dividends
• C. A corporation that has issued securities to the public
• D. A non-profit organization

Answer: (C)

The term "reporting issuer" refers specifically to a corporation that has issued securities to the public. This is significant because reporting issuers are typically required to file regular financial reports and disclosures with regulatory authorities, ensuring transparency and accountability to their shareholders and the public. This obligation is crucial for maintaining investor confidence and market integrity, as it allows investors to make informed decisions based on the corporation’s financial health and operational performance.

In contrast, a company with no public securities would not be subject to these reporting obligations, and therefore would not qualify as a reporting issuer. Similarly, while a corporation issuing recurring dividends indicates a level of profitability and shareholder returns, it does not inherently mean that the company is a reporting issuer unless it has also issued securities to the public. Lastly, a non-profit organization typically does not issue securities to the public, which also excludes it from being categorized as a reporting issuer.