1934 Act

The 1934 Act, officially known as the Securities Exchange Act of 1934, is U.S. federal law that governs the trading of stocks, bonds, and securities markets. Its primary purpose is to ensure transparency, fairness, and honesty in securities trading, protect investors from fraud, and regulate the securities industry. It established the Securities and Exchange Commission (SEC), which oversees compliance, investigates misconduct, and enforces securities laws. Essentially, it provides a framework to maintain trust and integrity in the securities markets, making them safer for investors and ensuring that trading is conducted fairly.