SIE Understanding Trading, Customer Accounts and Prohibited Activities Question 60: Answer and Explanation

Question: 60

1934 Act Section 14 – Proxies provides guidance to which of the following?

• A. FINRA members
• B. Boards of directors
• C. Over-the-counter market makers
• D. Qualified Investors

Correct Answer: B

Explanation:

B: Choice B is correct because 1934 Act Section 14 – Proxies directs board of directors as to the importance of giving information to shareholders, the information to be provided, the text of the proxy document, and how proxies may be requested. Choices A, C, and D are incorrect because this section is not directed at them.