Securities Exchange Act of 1934

Securities Exchange Act of 1934

The Securities Exchange Act of 1934 regulates the secondary trading of American stocks and bonds. Passed in reaction to the crippling stock market crash of 1929, and the subsequent Great Depression, the law (along with the Securities Act of 1933) was one of the first substantial regulation of American financial markets. The Securities and Exchange Commission was created to enforce the provisions of the law, along with subsequent financial regulation.