Investment Company and Variable Contracts Products Representative (Series 6)Practice Exam

Disable ads (and more) with a membership for a one time $2.99 payment

Enhance your competence for the Series 6 Exam. Study with expertly crafted multiple-choice questions, each complete with hints and detailed explanations. Elevate your performance and pass the exam with confidence.

Start Multiple Choice Practice Test
Start Flash Cards

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

Which federal law governs the registration of new issues?

  1. The Securities Exchange Act of 1934

  2. The Investment Company Act of 1940

  3. The Securities Act of 1933

  4. The Dodd-Frank Act

The correct answer is: The Securities Act of 1933

The Securities Act of 1933 is the federal law that governs the registration of new issues. This act was enacted to ensure that investors receive significant information about securities being offered for public sale, primarily through a prospectus that details the investment's risks and objectives. The primary focus of this law is to require issuers of securities to register their offerings with the Securities and Exchange Commission (SEC) before they can be sold to the public. This process aims to protect investors and maintain fair and efficient markets by preventing fraud and misrepresentation. The other options relate to different aspects of securities regulation. The Securities Exchange Act of 1934 primarily deals with the regulation of trading securities in the secondary market, including registration requirements for securities exchanges and broker-dealers. The Investment Company Act of 1940 regulates mutual funds and other investment companies, focusing on their registration and operations rather than initial security offerings. The Dodd-Frank Act, enacted in response to the financial crisis of 2008, introduced several reforms to improve financial stability but does not specifically govern the registration of new issues like the Securities Act of 1933.

More Questions Like This