Securities Exchange Act of 1934 (redirected from Securities and Exchange Act)

Securities Exchange Act of 1934

The Securities Exchange Act of 1934 was created to provide governance of securities transactions on the secondary market (after issue) and regulate the exchanges and broker-dealers in order to protect the investing public.

Notes:

All companies listed on stock exchanges must follow the requirements set forth in the Securities Exchange Act of 1934. Primary requirements include registration of any securities listed on stock exchanges, disclosure, proxy solicitations and margin and audit requirements.

From this act the Securities Exchange Commission (SEC) was created. The SEC's responsibility is to enforce securities laws.

See also: Antitrust, Broker-Dealer, Glass-Steagall Act, Margin, Proxy, Securities Exchange Commission (SEC)

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Securities Exchange Act of 1934

Legislation that created the SEC, outlawing dishonest practices in the trading of securities.

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Securities Exchange Act of 1934

Landmark legislation that established the SEC and that gives it authority over proxy solicitation and registration of organized exchanges. In addition, the Act sets disclosure requirements for securities in the secondary market, regulates insider trading, and gives the Federal Reserve authority over credit purchases of securities. When established, the Act reflected an effort to extend and overcome shortcomings of the Securities Act of 1933. These two pieces of legislation are the basis of securities regulation in the twentieth century. See also Foreign Corrupt Practices Act, Williams Act.