SIE Exam Question 749: Answer and Explanation

Question: 749

Which of the following acts is designed to provide greater deterrence and punishment for people trading on material non-public information, and to improve detection of other perceived market abuses?

• A. Securities Act Amendments of 1975
• B. Insider Trading and Securities Fraud Enforcement Act of 1988
• C. National Securities Market Improvement Act of 1996
• D. Sarbanes-Oxley Act of 2002

Correct Answer: B

Explanation:

The Insider Trading and Securities Fraud Enforcement Act of 1988 is designed to provide greater deterrence and punishment for people trading on material non-public information, and to improve detection of other perceived market abuses.