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SIE The Securities and Exchange Commission (SEC)

The SEC was created by the Securities Exchange Act of 1934. The SIE tests that origin, the split of responsibilities between the 1933 Act (registration of new offerings) and the 1934 Act (the secondary market, exchanges and broker-dealers), and the SEC’s authority over the SROs.

Practise this topic freeSee the full outline
Knowledge of Capital Markets · 16%35 questions0% hard
16%of the exam is Knowledge of Capital Markets, the section this topic sits in.
35questions on this topic in the PrepScore bank.
29%are recall-level questions — the dominant cognitive demand here.
1are EXCEPT / NOT items, where the answer is the odd one out.
What the SIE asks

What you actually need to know

  • The 1934 Act created the SEC; the 1933 Act preceded it and regulated new issues.
  • What each statute governs: primary offerings versus the secondary market.
  • SEC oversight of exchanges, broker-dealers and SROs.
  • The Investment Company Act of 1940 and the Investment Advisers Act of 1940.
How this topic behaves

What 35 questions on it look like

Not one question in this topic is rated hard, and 60% are easy. This is a topic to bank marks in, not to agonise over.

concept60%
scenario23%
comparison17%

Question-type mix across the 35 questions in this topic.

From the bank

Three real the securities and exchange commission (sec) questions

With the explanation — which is the part that teaches.

concept · easy · recall

Which federal statute created the Securities and Exchange Commission (SEC)?

  1. AThe Investment Company Act of 1940
  2. BThe Securities Exchange Act of 1934correct
  3. CThe Glass-Steagall Act of 1933
  4. DThe Securities Act of 1933
Why B is correct

The Securities Exchange Act of 1934 established the SEC. The 1933 Act regulated the primary-market registration of securities but predated and did not itself create the agency.

comparison · easy · apply

Which difference best separates the SEC's investor-protection mission from SIPC's customer-asset protection role?

  1. AThe SEC reimburses market losses; SIPC writes federal disclosure rules for issuers
  2. BThe SEC insures bank deposits; SIPC sets monetary policy for broker-dealers
  3. CThe SEC is a private protection corporation; SIPC is the federal securities regulator
  4. DThe SEC regulates securities markets and disclosure; SIPC addresses missing assets after broker-dealer failurecorrect
Why D is correct

The SEC is the federal securities regulator concerned with securities markets, disclosure, and antifraud regulation. SIPC is tied to customer-asset protection when a broker-dealer fails.

scenario · easy · apply

An issuer files a registration statement and later faces questions about whether its disclosures omitted material facts. Which regulator's authority is most directly implicated?

  1. AThe Federal Reserve, because all issuer disclosure is monetary policy
  2. BThe SEC, because registration, disclosure, and antifraud frameworks are central to federal securities regulationcorrect
  3. CThe FDIC, because public securities offerings are insured bank deposits
  4. DA transfer agent, because transfer agents approve all issuer disclosures
Why B is correct

The SEC's authority includes federal securities registration, disclosure, and antifraud frameworks. The stem points to issuer disclosures and material omissions.

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FAQ

The Securities and Exchange Commission (SEC) questions

Which act created the SEC?

The Securities Exchange Act of 1934. The Securities Act of 1933 regulated the registration of new offerings but did not itself create the agency.

What is the difference between the 1933 and 1934 Acts?

The 1933 Act governs the registration and sale of new issues — the primary market. The 1934 Act governs the secondary market, exchanges and broker-dealers.

Does the SEC regulate FINRA?

Yes. FINRA is an SRO operating under SEC oversight, and its rules require SEC approval.
Last reviewed 2026-08-28. Exam facts sourced to FINRA’s SIE exam page and the FINRA SIE content outline. Question counts describe the PrepScore bank, not the exam.
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Practise the securities and exchange commission (sec) until the rule is automatic.

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