What is the definition of the Securities and Exchange Act of 1934?

The Securities and Exchange Act of 1934 is the primary law in the United States governing financial markets. The act also brought the Securities and Exchange Commission (SEC) into being.

This act only deals with the secondary market for financial instruments. The secondary market is when financial assets are traded between investors rather than from the company into the market.

The SEC Act of 1934 regulates not only the exchanges upon which the financial instruments are traded (NYSE, NASDAQ etc.) but also the broker-dealers through which clients can trade securities.

In order to be listed on a US stock exchange, a company has to comply with the regulations of the Securities and Exchange Act 1934 which include: