Which act regulates the activities of securities salespeople?

The correct answer is the Securities Act of 1934, which establishes the regulatory framework for the secondary trading of securities and governs the activities of securities salespeople, also known as brokers. This act was enacted to promote transparency and protect investors in the securities markets following the stock market crash of 1929.

Specifically, the Securities Act of 1934 created the Securities and Exchange Commission (SEC), which is responsible for overseeing the securities industry, enforcing federal securities laws, and regulating both securities exchanges and brokers/dealers. Through the SEC, the act aims to prevent fraud, ensure that investors are provided with adequate information, and maintain fair and efficient markets.

The other options, while related to securities regulation, serve different purposes. The Securities Act of 1933 primarily focuses on the registration and disclosure requirements for new securities offerings. The Investment Company Act of 1940 regulates investment companies and their activities, ensuring that they operate fairly and transparently. The Securities Act of 1944, which is not widely recognized, does not pertain specifically to regulating securities salespeople. Therefore, the 1934 Act is the foundational legislation that directly addresses the regulation of securities salespersons and their activities within the financial markets.