The Security Exchange Act of 1934

Topics: U.S. Securities and Exchange Commission, Stock exchange, Securities regulation in the United States Pages: 1 (271 words) Published: May 25, 2013
The Security Exchange Act of 1934 is defined as followed. It is a law governing the secondary trading of securities. For example stocks, bonds and debentures in the United States. It is a regulation of financial markets and the participants in the United States. The Act in 1934 also established enforcement of the United States federal securities law, also known as SEC. The Federal securities laws were largely created as part of the New Deal. There are five particular prominent federal securities laws (Act of 1934). 1. Securities Act of 1933- regulating distribution of new securities (Act of 1934). 2. Securities Exchange Act of 1934- regulating trading securities brokers and exchanges (Act of 1934). 3. Trust Indenture Act of 1939- regulating debt securities (Act of 1934). 4. Investment Company Act of 1940- regulating mutual funds (Act of 1934). 5. Investments Advisers Act Of 1940- regulating investment advisors(Act of 1934). Before the Wall Street crash of 1929, there was little regulation of securities in the United States at the federal level. After all the abuses in the system, in 1933 congress passed the Securities Act. The following year, congress passed the Security Exchange Act of 1934. One area that the Thirty-four act regulation actually secures exchange, is the New York Stock Exchange, the American Stock Exchange, just to name a few. The thirty-four act also regulates broker- dealers. This enables brokers to find prices through newspapers and digital information network, also known as (NASDAQ) National Association of Securities Dealers Automated Quotation System. There have been two trading systems created over the last thirty years. The (ATS) Alternative Trading System
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