Exchange Act

The Exchange Act, officially known as the Securities Exchange Act of 1934, is a U.S. law that regulates the trading of securities in secondary markets. It was created to ensure transparency and protect investors from fraud. The Act established the Securities and Exchange Commission (SEC), which oversees stock exchanges and requires companies to disclose financial information, ensuring that investors have access to relevant data when making investment decisions. In essence, the Exchange Act aims to create a fair and orderly marketplace for securities trading.