Which of the following is true about the 1933 and 1934 securities acts? The 1933

Question

Which of the following is true about the 1933 and 1934 securities acts?

The 1933 act covers the initial issuance and subsequent trading of stocks and the 1934 act covers the initial issuance and subsequent trading of bonds.

The 1933 act covers securities listed on stock exchanges and the 1934 act covers nonlisted securities.

The 1933 act covers the initial issuance of securities and the 1934 act covers the subsequent trading of securities.

The 1934 act replaced the 1933 act, covering all aspects of securities issuance and trading.

Explanation / Answer

c. The 1933 act covers the initial issuance of securities and the 1934 act covers the subsequent trading of securities.

From Wikipedia:

Contrasted with the Securities Act of 1933, which regulates these original issues, the Securities Exchange Act of 1934 regulates the secondary trading of those securities between persons often unrelated to the issuer, frequently through brokers or dealers.

http://en.wikipedia.org/wiki/Securities_Exchange_Act_of_1934

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