SIE Exam Question 487: Answer and Explanation

Question: 487

Which act gave the NASD (now part of FINRA) the authority to regulate the OTC market?

• A. The Securities Act of 1933.
• B. The NASD Act of 1929.
• C. The Maloney Act of 1938.
• D. The Securities Act of 1934.

Correct Answer: C

Explanation:

C: The Maloney Act of 1938 was an amendment to the Securities Exchange Act of 1934 and established the NASD (now part of FINRA) as the self-regulatory organization for the over-the-counter market.