Rule 3 of 6 in this unit1.1.1

1.1.1 The Securities and Exchange Commission (SEC)

SIE outline 1.1.1

A Self-Regulatory Organization Regulates Its Own Members

An industry organization with authority to write and enforce rules for the firms and people inside it, under SEC oversight. NOT a government agency.

The method for this kind of question
  1. This material is Section 1: 12 of the 75

Now answer

2 questions on this screen, from this outline item's own pool, so some will test a rule you met earlier in the unit. Pick an answer, say how sure you are, then reveal. Being sure and wrong is the most useful thing that can happen here, and the coach treats it that way.

Question 1Exam level

The SEC states its own mission in three parts: protecting investors, maintaining fair, orderly and efficient markets, and which third goal?

How sure are you?

Correct: A. The SEC's own mission page names facilitating capital formation as its third stated goal, alongside investor protection and fair, orderly, efficient markets.
B. Setting monetary policy is the Federal Reserve's job, not the SEC's.
C. Insuring bank deposits is the FDIC's job, not the SEC's.
D. FINRA writes its own rulebook, which the SEC then reviews; the SEC does not write it directly.

Unit: SIE outline 1.1.1

Question 2Exam level

The Securities Act of 1933 is primarily about what?

How sure are you?

Correct: A. The 1933 Act governs new issues, the offering itself, under Sections 7, 8, 10 and 23.
B. Describes the 1934 Act's subject, the ongoing markets and the people in them, not the 1933 Act.
C. The passing score is set separately and appears nowhere in either foundation statute.
D. SIPC was created by the Securities Investor Protection Act of 1970, a different statute entirely.

Unit: SIE outline 1.1.1

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