Introductory Business Law CLEP Prep Practice Exam

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Prepare for the Introductory Business Law CLEP Exam with our comprehensive quiz, designed to cover essential legal concepts and practices. Study effectively and boost your chances of success!

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What act enacted by the United States regulates securities?

  1. Sarbanes-Oxley

  2. Federal Sentencing Guidelines

  3. Equal Employment Opportunity Act

  4. Securities Exchange Act

The correct answer is: Securities Exchange Act

The Sarbanes-Oxley Act (choice A) was enacted to address corporate and accounting fraud. While it does have some provisions related to securities, it is not the primary act that regulates securities. The Federal Sentencing Guidelines (choice B) are a set of guidelines used in criminal cases, and do not pertain to regulating securities. The Equal Employment Opportunity Act (choice C) prohibits discrimination in the workplace and has no relation to regulating securities. The correct answer is D, the Securities Exchange Act, which was enacted to regulate the buying and selling of securities, including stocks and bonds, and to protect investors from fraudulent or manipulative practices. This act created the Securities and Exchange Commission (SEC), the main regulatory body for securities in the United States.

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