Financial Industry Regulatory Authority (FINRA) Practice Exam 2026 - Free FINRA Practice Questions and Study Guide

The correct answer is the Exchange Act. This term is actually associated with the Securities Exchange Act of 1934, which focuses on regulating secondary trading of securities and establishing the Securities and Exchange Commission (SEC). The Securities Act of 1933, on the other hand, primarily addresses the initial sale of securities, requiring issuers to provide a prospectus to potential investors and ensuring that they disclose important financial information to enable informed investment decisions.

In contrast, the Full and Fair Disclosure Act refers to provisions aimed at ensuring investors receive significant information about securities to uphold transparency and accountability in the market. The Truth in Securities Act underscores the need for truthful information in the sale of securities. Lastly, the Prospectus Act relates directly to the requirement for issuers to deliver a prospectus to investors in connection with new security offerings. These terms are directly linked to the principles of the Securities Act of 1933, reinforcing its core objectives of transparency and investor protection.