SIE practice questionmediumInsider Trading
A registered representative trades a stock after learning material, non-public information from a client. Which law is violated?
- ASecurities Exchange Act of 1934✓ Correct answer
- BSecurities Act of 1933
- CInvestment Company Act of 1940
- DRegulation D
Explanation
Why A — Securities Exchange Act of 1934
Insider trading is prohibited under the Securities Exchange Act of 1934. The 1933 Act governs new issues, the 1940 Act covers investment companies, and Reg D concerns private offerings.
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