SIE practice questioneasySecurities Exchange Act of 1934 - Insider Trading
Which act gave the SEC authority to enforce rules against insider trading in the secondary market?
- ASecurities Exchange Act of 1934✓ Correct answer
- BSecurities Act of 1933
- CInvestment Advisers Act of 1940
- DSarbanes-Oxley Act
Explanation
Why A — Securities Exchange Act of 1934
The Securities Exchange Act of 1934 governs secondary market transactions and gave the SEC power to combat insider trading. The 1933 Act refers to primary issuance; the Advisers Act regulates advisers, and SOX focuses on corporate governance.
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