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.
Turn it into reps
Reading one answer is not the same as being ready
Lucky the Banker is a free practice app with 1,867+ SIE questions, weak-area tracking, and timed mock exams. No credit card, no paywall.
Related Capital Markets & Offerings questions
- A company raising capital under Regulation A+ fails to provide an offering circular to investors. This is:
- Which investor is eligible to participate in a Regulation D private placement without restrictions?
- A U.S. issuer sells unregistered securities offshore to non-U.S. residents in compliance with Regulation S. Which…
- Which security is EXEMPT from the registration requirements of the Securities Act of 1933?