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You work for a company whose stock is publicly traded on the New York Stock Exchange. The Securities and Exchange Commission, or SEC, (an agency) sends your company a notice that they are suspected of violating an SEC rule about publicly traded stock.

Describe the two-step administrative action process that the SEC will take to deal with the suspected violation: negotiated settlements and adjudication. Why do the parties want to start by trying to reach a negotiated settlement? If settlement talks fail, describe in detail how the adjudication process would work.