What Is the Securities Exchange Act of 1934? Reach and History

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What Is the Securities Exchange Act of 1934? Reach and History

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Objective of Securities Exchange Act of 1934 is to oversee secondary market participants

Objective of Securities Exchange Act of 1934 is to introduce national disclosure requirements for securities issuers

Objective of Securities Exchange Act of 1934 is to prevent fraud in the secondary securities market

Securities Exchange Act created Securities and Exchange Commission (SEC) to regulate and discipline all aspects of the securities industry -register, regulate, oversee market participants, require periodic reporting information, discipline market participants and lead investigations into potential violations of the act

Objective of Securities Act of 1933 is to introduce national disclosure requirements for companies selling securities (in primary market)

Securities Exchange Act requires companies with more than 10$ million in assets whose securities are held by more than 500 owners to file annual and quarterly financial reports, disclose major events that are relevant to investors. These reports are public through SEC EDGAR database

Objective of Securities Act of 1933 is to provide investors financial and other significant information concerning securities being offered for public sale (primary market)

Objective of Securities Act of 1933 is to prohibit deceit, misrepresentation, and other fraud in the sale of securities (in primary market)

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02

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24

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2023

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12

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The SEC has the power and responsibility to lead investigations into potential violations of the SEA, such as insider trading, selling unregistered stocks, stealing customers' funds, manipulating market prices, disclosing false financial information, and breaching broker-customer integrity.

The SEA has two primary goals. It is intended to prevent fraud in the securities market and to create more transparency in companies' financial disclosures so that investors have the information they need to make informed decisions.

Under the SEA, companies with publicly held securities, as well as companies of a certain size, are known as reporting companies. This means they must make regular financial disclosures that provide investors with pertinent information about the company. These disclosures include: Annual reports, using Form 10-K Quarterly reports, using Form 10-Q Major events that are relevant to investors and shareholders, using Form 8-K These disclosures provide investors with access to the information they need to make informed investing decisions

The Securities Exchange Act of 1933 regulates newly issued securities, such as those being sold through an initial public offering. The Securities Exchange Act of 1934 regulates securities that are already being actively traded on the secondary market.

The Securities and Exchange Commission (SEC) is the regulatory arm of the Securities Exchange Act of 1934. The SEA granted the SEC broad authority to regulate all aspects of the securities industry. It manages the disclosure and sharing of market-related information, which is designed to promote fair dealing for investors and protect against securities fraud.

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Objective of Securities Exchange Act of 1934 is to oversee secondary market participants

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Objective of Securities Exchange Act of 1934 is to prevent fraud in the secondary securities market

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Objective of Securities Exchange Act of 1934 is to introduce national disclosure requirements for securities issuers

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