Which act established the Securities and Exchange Commission to regulate securities markets?

Which act established the Securities and Exchange Commission to regulate securities markets?

• A. The Securities Exchange Act of 1934
• B. The National Industrial Recovery Act
• C. The Glass-Steagall Act
• D. The Federal Reserve Act

Answer: (A)

After the stock market crash of 1929, Congress moved to restore trust in financial markets by bringing securities trading under federal oversight. The act that established the Securities and Exchange Commission created this new agency and gave it broad authority to supervise securities exchanges, regulate brokers and dealers, require regular reporting from public companies, and enforce laws designed to curb fraud and manipulation. In essence, it set up the ongoing governance framework for how securities markets operate. This distinguishes it from other reforms of the era: the National Industrial Recovery Act aimed at broad economic recovery, the Glass-Steagall Act separated commercial and investment banking, and the Federal Reserve Act created the central banking system. The 1934 act is the one that specifically established the SEC to regulate securities markets.

After the stock market crash of 1929, Congress moved to restore trust in financial markets by bringing securities trading under federal oversight. The act that established the Securities and Exchange Commission created this new agency and gave it broad authority to supervise securities exchanges, regulate brokers and dealers, require regular reporting from public companies, and enforce laws designed to curb fraud and manipulation. In essence, it set up the ongoing governance framework for how securities markets operate. This distinguishes it from other reforms of the era: the National Industrial Recovery Act aimed at broad economic recovery, the Glass-Steagall Act separated commercial and investment banking, and the Federal Reserve Act created the central banking system. The 1934 act is the one that specifically established the SEC to regulate securities markets.