A common type of stock broker fraud may occur with respect to the issuance and sale of securities. Many brokerage firms operate both as brokers, in acting as an intermediary between buyers and sellers of securities, and dealers, in directly buying and selling securities for its own account. With a few exceptions, the Securities and Exchange Act of 1934 ("the Exchange Act") prohibits any individual from acting as a broker or dealer unless he or she is registered with the Securities and Exchange Commission ("SEC"). There are certain exemptions to the Exchange Act for some securities-related activities performed by banks, but the SEC typically requires registration, and can even deny registration if certain requirements are not met. Under the Exchange Act, the SEC also may set training and testing prerequisites for becoming a licensed broker, as well as ongoing standards for professional conduct. Furthermore, the Exchange Act imposes a broad range of standards for licensed brokers, mostly to protect against fraud, manipulation, excessive risk, and insolvency.