The Securities Exchange Act of 1934 prohibits:
I. a member firm of a registered stock exchange from effecting transactions for its own account as principal.
II. a broker/dealer from exercising discretion in a client's account unless written discretionary authority is received prior to the first trade for the client.
III. the purchase of a security on one exchange and the simultaneous sale of that security at a higher price on another exchange.
IV. the use of fraudulent or manipulative devices in the sale of an exempt security.
A) II and IV.
B) I and II.
C) I and III.
D) III and IV.
Answer: A) II and IV.