SIE practice questionmediumSecurities Exchange Act of 1934
Which of the following is required to register as a broker-dealer under the Securities Exchange Act of 1934?
- AFirms that effect securities transactions for others✓ Correct answer
- BMutual funds
- CIssuers only
- DCompanies trading only government bonds
Explanation
Why A — Firms that effect securities transactions for others
Broker-dealers must register if they execute transactions for others. Mutual funds register under the 1940 Act. Issuers and government-only traders are not always broker-dealers.
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