Securities Exchange Act

The Securities Exchange Act of 1934 is a U.S. law that regulates the buying and selling of stocks and other securities. It aims to protect investors by ensuring transparency, honesty, and fair practices in the securities markets. The Act established the Securities and Exchange Commission (SEC), which enforces rules against fraud, requires companies to disclose financial information, and oversees stock exchanges. Overall, it creates a framework to maintain confidence in the securities markets, prevent manipulation, and promote fair trading practices.