Securities Exchange Act of 1934

Securities Exchange Act of 1934
Great Seal of the United States
Long titleAn act to provide for the regulation of securities exchanges and of over-the-counter markets operating in interstate and foreign commerce and through the mails, to prevent inequitable and unfair practices on such exchanges and markets, and for other purposes.
NicknamesSecurities Exchange Act
Exchange Act
1934 Act
'34 Act
Enacted bythe 73rd United States Congress
Citations
Public lawPub.L. 73–291
Statutes at Large48 Stat. 881
Codification
Titles amended15 U.S.C.: Commerce and Trade
U.S.C. sections created15 U.S.C. § 78a et seq.
Legislative history
Major amendments
United States Supreme Court cases

The Securities Exchange Act of 1934 (also called the Exchange Act, '34 Act, or 1934 Act) (Pub.L. 73–291, 48 Stat. 881, enacted June 6, 1934, codified at 15 U.S.C. § 78a et seq.) is a law governing the secondary trading of securities (stocks, bonds, and debentures) in the United States of America.[1] A landmark of wide-ranging legislation, the Act of '34 and related statutes form the basis of regulation of the financial markets and their participants in the United States. The 1934 Act also established the Securities and Exchange Commission (SEC),[2] the agency primarily responsible for enforcement of United States federal securities law.

Companies raise billions of dollars by issuing securities in what is known as the primary market. Contrasted with the Securities Act of 1933, which regulates these original issues, the Securities Exchange Act of 1934 regulates the secondary trading of those securities between persons often unrelated to the issuer, frequently through brokers or dealers. Trillions of dollars are made and lost each year through trading in the secondary market.

  1. ^ Lin, Tom C. W. (April 16, 2012). "A Behavioral Framework for Securities Risk". Seattle University Law Review. Rochester, NY. 34: 325. SSRN 2040946.
  2. ^ Cox, James D.; Hillman, Robert W.; Langevoort, Donald C. (2009). Securities Regulation: Cases and Materials (6th ed.). Aspen Publishers. p. 11.

From Wikipedia, the free encyclopedia · View on Wikipedia

Developed by Nelliwinne