Which act mandates the accuracy of municipal bond statements?

The Securities Exchange Act of 1934 is the legislation that plays a crucial role in ensuring the accuracy of municipal bond statements. This act was established to govern the trading of securities after their initial sale and aims to protect investors by requiring that all publicly traded companies disclose financial and other significant information.

One of the key provisions of the 1934 Act is the mandate that issuers of municipal bonds must provide accurate and timely disclosures to investors. This is instrumental in promoting transparency within the municipal bond market and helps prevent fraudulent practices. The SEC (Securities and Exchange Commission) enforces these requirements, and the act includes various reporting obligations that ensure stakeholders have the necessary information to make informed investment decisions regarding municipal securities.

This focus on disclosure and accuracy distinguishes the 1934 Act from other legislation, such as the 1933 Act, which primarily addressed the initial registration of securities and established requirements for offering documents, rather than the accuracy of ongoing disclosures post-issuance. The other options, like the Investment Company Act, primarily deal with the regulations surrounding investment companies and mutual funds, hence are not directly related to the accuracy of municipal bond statements.