SIE Exam Question 1048: Answer and Explanation

Question: 1048

All but which of the following are correct regarding the Securities Exchange Act of 1934?

• A. It created the SEC.
• B. It regulates securities transactions in the secondary market.
• C. It is referred to as the "truth in securities" law.
• D. It includes provisions for other areas of securities law, including insider trading, antifraud, and proxy solicitation.

Correct Answer: C

Explanation:

The Securities Exchange Act of 1934 created the SEC, regulates the securities transactions in the secondary market, and includes provisions for other areas of securities law, including insider trading, antifraud, and proxy solicitation. The "truth in securities" law is another name for the Securities Act of 1933.