Securities Exchange Act of 1934
The Securities Exchange Act of 1934 (as amended, the “Exchange Act”) established the Securities and Exchange Commission (the SEC) and gave it the power to oversee the securities industry. Through the Exchange Act, the SEC gained the authority to register, regulate, and oversee brokerage firms, transfer agents, and clearing agencies. The Commission also has authority over the U.S. securities self-regulatory organizations (SROs), including: The New York Stock Exchange, NASDAQ Stock Market, Chicago Board of Options, and the Financial Industry Regulatory Authority. SROs must have guidelines in place to make sure investors are protected.
What Are the Rules of the Securities Exchange Act of 1934?
The rules of the 1934 Securities Exchange Act (as amended, the “Exchange Act”) cover specific actions in the markets and outline the SEC’s disciplinary powers over regulated organizations. Deceptive practices related to the offer, purchase, or sale of securities are banned. Rules of the Exchange Act also require companies with publicly traded securities to file periodic reports, which are then made available to the public. Additionally, the Act governs the disclosure of materials used to solicit shareholders’ votes.
