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Morgan Bennett Mr. Harris History Honors- Per 5 April 2001 The Securities and commutation delegacy In 1934 the Securities telephone exchange Act created the SEC (Securities and permute Commission) in response to the pipeline grocery store crash of 1929 and the Great Depression of the 1930s. It was created to protect U.S. investors against malpractice in securities and financial markets. The purpose of the SEC was and still is to carry level up the mandates of the Securities Act of 1933: To protect investors and maintain the integrity of the securities market by amending the current laws, creating unseasoned laws and seeing to it that those laws argon gived. During the 1920s, some 20 million Americans took advantage of post-war prosperity by purchase shares of course in various securities exchanges. When the stock market crashed in 1929, the fortunes of more a(prenominal) investors were lost. In addition, banks lost great sums of money in the chisel in because they h ad invested heavily in the markets. When people feared their banks baron not be able to pay back the money that depositors had in their accounts, a run on the banking system caused many bank failures. after(prenominal) the crash, universe confidence in the market and the saving vanish sharply. In response, Congress held hearings to identify the problems and look for solutions; the dissolvent was set in motion in the new SEC.

The Commission was established in 1934 to enforce new securities laws that were passed with the Securities Act of 1933 and the Securities Exchange Act of 1934. The two new laws stated th at Companies publicly religious offering se! curities must tell the public the truth about their businesses, the securities they are selling and the risks involved in the investing. Secondly, People who sell and divvy up securities must treat investors passably and honestly, putting investors interests first.2         Franklin Delano Roosevelt foiled Herbert Hoover... If you want to get a full essay, order it on our website: OrderCustomPaper.com

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