The US Securities Exchange Act of 1934

The US Securities Exchange Act of 1934, also known as the Securities Exchange Act of 1934, is a landmark piece of legislation that significantly reshaped the American financial landscape. Enacted on June 6, 1934, during the Great Depression, this Act was a response to the stock market crash of 1929 and the subsequent financial turmoil that exposed the need for increased regulatory oversight of the securities industry. The Act established the Securities and Exchange Commission (SEC), a federal agency with the authority to regulate and oversee the securities markets, enforce securities laws, and protect investors from fraudulent activities. It aimed to restore investor confidence and ensure the integrity of the financial system by requiring periodic reporting of financial information by public companies, prohibiting manipulative and deceptive practices, and regulating the trading of securities on national exchanges. The Act's provisions cover a wide range of areas including disclosure requirements, proxy rules, insider trading, and market manipulation, and have had a lasting impact on securities regulation in the United States.