SIE practice questionmediumSecurities Exchange Act of 1934
Under the Securities Exchange Act of 1934, which practice is specifically prohibited?
- ARecommending low-risk bonds to conservative investors
- BUsing manipulative or deceptive devices in connection with securities trading✓ Correct answer
- COpening a cash account for a customer
- DReporting quarterly financials
Explanation
Why B — Using manipulative or deceptive devices in connection with securities trading
The 1934 Act prohibits manipulative and deceptive acts in connection with securities trading. The other options represent lawful, routine business practices.
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