Securities Exchange Act of 1934

(redirected from Securities and Exchange Act)

Securities Exchange Act of 1934

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

Securities Exchange Act of 1934

Legislation in the United States that regulated broker-dealers and secondary trades on American stock exchanges. This Act also created the Securities and Exchange Commission to help it accomplish its goals. The act prohibited certain trades that would unfairly or dangerously manipulate prices. For example, the Act forbids churning, in which an investor makes both buy and sell orders through different brokers to create the impression of increased interest in the security and to raise the price. It was one of the most important regulatory laws that came out of the New Deal.

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.
References in periodicals archive ?
The issue in the following case is whether Section 10(b) of the Securities and Exchange Act of 1934 provides a cause of action to foreign plaintiffs suing foreign and U.S.
To avoid triggering registration and periodic reporting requirements under the Securities and Exchange Act of 1934, NASDAQ will keep track of the number of investors to ensure that the number of QIBs invested in any particular company does not exceed 499.
Also on that date, E possessed material nonpublic information about M that would subject him to liability under Rule 10b-5 under the Securities and Exchange Act of 1934 ('34 Act) if E sold the shares while in possession of such information.
The Securities Act of 1933 and the Securities and Exchange Act of 1934 created the U.S.
Jett was ordered to cease and desist violations of sections of the Securities Act of 1933 and the Securities and Exchange Act of 1934, pay $8.21 million in disgorgement, pay a civil penalty of $200,000, and he was barred from association with a broker or dealer.
The committee report further states, "even more surprising, in the context of audits and reviews conducted under the Securities and Exchange Act of 1934, there is currently no clear statutory requirement that accountants retain the most basic work papers to support the conclusions reached and opinions expressed in their audits, much less more detailed records, to facilitate determinations by federal regulators and law enforcement officials of whether a corporation or its accountants tried to mislead the public, as in the Enron matter."
Repeal of sections 7 and 8(a) of the Securities and Exchange Act of 1934 would leave federal oversight of securities credit extensions by broker-dealers to securities regulators, including self-regulatory organizations (SROs).
Microcaps with less than $125 million in annual revenue and smallcaps with less than $10 million in product revenue would be exempt from Section 404 as long as they adhere to the Securities and Exchange Act of 1934 audit committee standards and adopt a code of ethics to comply with Item 406 of Regulation S-K.

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