SIE Exam Question 92: Answer and Explanation

Question: 92

The SEC was created under _____________.

• A. The Securities Act of 1933
• B. The Securities Exchange Act of 1934
• C. Investment Company Act of 1940
• D. Investment Advisers Act of 1940

Correct Answer: B

Explanation:

Congress created the Securities and Exchange Commission (SEC) under the Securities Exchange Act of 1934. The Securities Act of 1933 regulates the stock market. The Investment Company Act of 1940 regulates the organization of investment companies. The Investment Advisers Act of 1940 defines an investment advisor.