SIE practice questioneasySecurities Exchange Act of 1934
A company’s common stock is actively traded on a national securities exchange. Which federal law primarily regulates these secondary market trades?
- ATrust Indenture Act of 1939
- BSecurities Act of 1933
- CInvestment Company Act of 1940
- DSecurities Exchange Act of 1934✓ Correct answer
Explanation
Why D — Securities Exchange Act of 1934
Secondary markets are primarily regulated by the Securities Exchange Act of 1934. The 1933 Act handles initial offerings, the Investment Company Act regulates investment companies, and the Trust Indenture Act focuses on corporate debt securities.
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