SIE practice questionhardSecurities Regulations - Multi-Act Coverage
A broker-dealer must comply with which acts when distributing new mutual fund shares to the public?
- AOnly the Investment Advisers Act of 1940
- BOnly the Securities Exchange Act of 1934
- CBoth the Securities Act of 1933 and the Investment Company Act of 1940✓ Correct answer
- DOnly the Securities Act of 1933
Explanation
Why C — Both the Securities Act of 1933 and the Investment Company Act of 1940
New mutual fund offerings must comply with both acts. The 1934 Act regulates exchanges, the Advisers Act is for advisers only.
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