Securities and Exchange Act

The Securities and Exchange Act is a law established in 1934 to regulate the stock market and protect investors. It aims to ensure transparency, fairness, and honesty in buying and selling securities (like stocks and bonds). The act created the Securities and Exchange Commission (SEC), which enforces rules against fraud, manipulation, and insider trading. Its goal is to maintain trust in the financial markets by requiring companies to provide accurate information and by overseeing trading activities, helping investors make informed decisions and reducing unfair practices.