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NEW QUESTION: 1
Which of the following is not one of the rules stipulated by the Securities Exchange Act of 1934?
A. Investment companies are prohibited from using any sales literature that contains an omission of a material fact.
B. Firms are required to send copies of their annual reports to investors before an annual meeting at which directors are to be elected.
C. All securities' exchanges and SROs are required to register with the SEC.
D. All brokers and dealers are required to be members of a national securities association.
Answer: A
Explanation:
Explanation/Reference:
Explanation: The rule prohibiting investment companies from using any sales literature that contains an omission of a material fact is not one of the rules stipulated by the Securities Exchange Act of 1934. This involves the market for new securities and, as such, is a rule stipulated by the Securities Act of 1933. The
1934 Act deals with the secondary market.

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