Insider trading is prevented by the following Act:
A)the Security Exchange Act.
B)the Lanham Act.
C)the Clayton Act.
D)the Robinson Patman Act.

Question

Quizplus · Accepted Answer

The Security Exchange Act of 1934 includes a provision (Rule 10b-5) that prohibits insider trading, which is the illegal buying or selling of securities based on material nonpublic information. This Act also established the Securities and Exchange Commission (SEC) to enforce securities laws and protect investors. The Lanham Act primarily deals with trademarks and unfair competition, while the Clayton and Robinson Patman Acts focus on antitrust regulation.

Insider Trading Is Prevented by the Following Act