Under the SEC Act of 1934, which activity is unlawful?

The correct answer is that all the mentioned activities are unlawful under the SEC Act of 1934. This legislation was established to regulate the securities industry and protect investors against fraudulent activities.

Implementing a series of trades to create an active appearance can be identified as market manipulation. This activity is deceptive as it gives a false impression of market demand, which can mislead other investors regarding the actual interest and value of a security.

Inducing the sale of a security through misleading statements directly contravenes the Act’s provisions against fraud. This practice misleads investors and distorts their decision-making, ultimately undermining market integrity.

Distributing information that could affect the price of a security falls into the realm of spreading rumors or misinformation, which can also be a form of market manipulation. It can lead to price volatility and disrupt the fair functioning of the market.

Overall, the SEC Act of 1934 aims to maintain fair and efficient markets. All the activities mentioned contribute to an unfair market environment, making them unlawful under the Act.