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Securities Exchange Act
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Securities Exchange Act

United States [1934]
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Quick Summary

The Securities Exchange Act of 1934 is a landmark piece of U.S. legislation enacted in response to the stock market crash of 1929. Its primary goal was to restore investor confidence by preventing misleading sales practices and stock manipulation. The Act established the Securities and Exchange Commission (SEC) as an independent federal agency to oversee securities markets. Key provisions include requiring full public disclosure of relevant information by companies offering securities, prohibiting the purchase of stock without adequate funds, and establishing rules for securities markets and brokers. It also introduced regulations for margin trading to limit excessive credit use.123

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6 Britannica Sources
  1. Securities and Exchange Commission
  2. Financial Industry Regulatory Authority (FINRA)
  3. Black Tuesday and the Crash of 1929
  4. Black Thursday
  5. Black Tuesday and the Crash of 1929: Top Questions
  6. Dodd-Frank Wall Street Reform and Consumer Protection Act - Title IX: Investor Protections and Improvements to the Regulation of Securities

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