Under the 1934 Act, which entities are covered by registration for brokers/dealers?

• A. Only those operating in interstate commerce
• B. Only those on national exchanges
• C. Brokers/Dealers operating in interstate commerce, including those on exchanges and OTC
• D. Only corporations with listed securities

Answer: (C)

Under the Securities Exchange Act of 1934, brokers and dealers must register if they are in the business of effecting securities transactions and operate in interstate commerce. This includes those involved in transactions on national exchanges as well as those dealing in the over-the-counter market. The requirement isn’t limited to a single venue or to corporations with listed securities; it covers the broader activity of conducting securities trades across state lines. So brokers/dealers operating in interstate commerce, including those on exchanges and OTC markets, are the ones who must register.