Securities Exchange Act Of 1934
What Does Securities Exchange Act Of 1934 Mean?
The Securities Exchange Act of 1934 was created to provide governance of securities transactions on the secondary market (after issue) and regulate the exchanges and broker-dealers in order to protect the investing public.
Investopedia explains Securities Exchange Act Of 1934
All companies listed on stock exchanges must follow the requirements set forth in the Securities Exchange Act of 1934. Primary requirements include registration of any securities listed on stock exchanges, disclosure, proxy solicitations and margin and audit requirements.
From this act the Securities Exchange Commission (SEC) was created. The SEC's responsibility is to enforce securities laws.