Securities Exchange Act of 1934

The Securities Exchange Act of 1934 is a U.S. law that regulates the trading of securities (like stocks and bonds) in the secondary market. Its main goals are to promote fair trading practices, prevent fraud, and protect investors. It established the Securities and Exchange Commission (SEC), which oversees the securities industry, enforces laws against market manipulation, and requires companies to disclose important financial information. This transparency helps investors make informed decisions and ensures a fair marketplace. Overall, the Act strengthened investor confidence and contributed to the stability of the financial system.