Securities Exchange Act of 1934
Governs secondary-market trading and created the SEC.
What is Securities Exchange Act of 1934?
Regulates exchanges, broker-dealers, ongoing issuer reporting, proxy solicitation, insider trading, and margin requirements. It established the SEC as the enforcing agency.
Securities Exchange Act of 1934: a worked example
Ongoing 10-K and 10-Q reporting obligations come from the '34 Act.
More terms in Regulation & Professional Duty
Fiduciary Duty
A legal obligation to act in the client's best interest.
Suitability Standard
A recommendation must be appropriate given the client's profile.
Regulation Best Interest (Reg BI)
SEC rule requiring broker-dealers to act in a retail client's best interest.
Registered Investment Adviser (RIA)
A firm registered to give advice for a fee, holding fiduciary duty.
Broker-Dealer
A firm that executes trades as agent (broker) or principal (dealer).
FINRA
The self-regulatory organization overseeing broker-dealers.
Securities and Exchange Commission (SEC)
The federal agency regulating securities markets.
SIPC
Insurance against broker failure - not against investment losses.