{"id":352694,"date":"2016-04-04T10:42:08","date_gmt":"2016-04-04T15:42:08","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/consumer\/securities-law\/securities-and-exchange-act-of-1934.html"},"modified":"2024-05-06T08:13:10","modified_gmt":"2024-05-06T13:13:10","slug":"securities-and-exchange-act-of-1934","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/consumer\/securities-law\/securities-and-exchange-act-of-1934.html","title":{"rendered":"Securities Exchange Act of 1934"},"content":{"rendered":"\n
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Securities Exchange Act of 1934<\/h1>\n
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\n By Oni Harton, J.D.<\/a> | Legally reviewed by Melissa Bender, Esq.<\/a>\n | Last updated\n
\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

\n \n <\/i>\n Fact-Checked\n <\/summary>\n\n
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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n

The Securities Exchange Act of 1934 is a federal law regulating the trading of securities. This includes stocks and bonds in the secondary market. The secondary market<\/a> is the market for securities after an issuer makes them available. The primary market<\/a> is the market for newly issued securities. The Securities Act of 1933 regulates newly issued securities.<\/p>\r\n

This article has information about the main provisions of the Securities Exchange Act of 1934, enforcement actions, and what to do if you need help with a securities matter.<\/p>\r\n

The act governs how U.S. securities markets and its broker-dealers operate. You can read the full text of the amended act here<\/a>. You can find more articles and resources in FindLaw’s Securities Law<\/a> section.<\/p>\r\n

Background of the Act<\/h2>\r\n

Congress passed the Securities Exchange Act of 1934 and the Securities Act of 1933 mainly in response to the stock market crash of 1929. The crash happened partly because of a lack of transparency in the sale of securities. Before the passage of federal securities laws, a patchwork of state laws regulated the securities industry with varying degrees of success.<\/p>\r\n

The 1934 act established the Securities and Exchange Commission (SEC)<\/a>. The 1934 act gave the SEC broad power to regulate the secondary U.S. securities market.<\/p>\r\n

Main Provisions of the Securities Exchange Act of 1934<\/h2>\r\n

The Securities Exchange Act of 1934 gives the SEC broad authority over the securities industry. It’s designed to protect personal assets and allow investors to make informed investment decisions, among other goals.<\/p>\r\n

The SEC has the power to regulate, register, and oversee:<\/p>\r\n