Securities and Exchange Commission

Securities and Exchange Commission (1934)

Purpose

Like most new deal programs, the goal was to restore confidence in a certain part of America’s financial system. There were two parts that made the SEC, the Truth in Securities Act (1933) and another act in 1934 that made up the SEC (Brinkley, 629). It was supposed to make investors feel safer and restore confidence in investing their money in teh stock market. (Wallechinsky)

Act of Reform

It set new rules for investments and selling securities which made the whole stock market more reliable and restored some confidence in it after the 1929 crash. It was made a program because there was something wrong with the market which was brought to attention when it crashed.

Who did it help?

It helped the overall market to be seen as more trustworthy and especially helped investors trust businesses and the market itself. At first businesses were not a fan of more regulations but in the long run it benefitted everyone.(History.com Staff)

What did it do?

It only allowed stocks to be bought if you don't have the money to buy it; "provided for the registration and supervision of securities markets and stockbrokers, established rules for solicitation of proxies, and prevented unfair use of nonpublic information in stock trading. It also stipulated that a company offering securities make full public disclosure of all relevant information." (Britannica)

Liberal

I consider this legislature liberal because it is the government putting limits on the stock market that promote equality between investors

-it set limits that made it so companies selling trade securities had to be honest and do fair business with investors. (Wallechinsky)

Successful? Yes

The Securities and Exchange Commission did its job. It created better conditions for American business and made the market more fair and equal for investors. (Kenneth/Kinnane)

1940: the SEC brought actions against nine of the country’s 13 largest public utilities holding companies. Through these actions, the SEC restructured the utilities industry. (Wallechinsky)

Citations:

History.com Staff. "Securities and Exchange Commission." History. A+E Networks,

2010. Web. 9 Mar. 2016. <http://www.history.com/topics/

securities-and-exchange-commission>.

"Securities and Exchange Commission (SEC)". Encyclopædia Britannica. Encyclopædia Britannica Online.

Encyclopædia Britannica Inc., 2016. Web. 09 Mar. 2016

<http://www.britannica.com/topic/Securities-and-Exchange-Commission>.

Durr, Kenneth, and Adrian Kinnane. "431 Days: Joseph P. Kennedy and the Creation of the SEC (1934-35)." Securities and Exchange Commission Historical Society. Securities and Exchange Commission Historical Society, 1 Dec. 2005. Web. 9 Mar. 2016. <http://www.sechistorical.org/museum/galleries/

kennedy/legacy_c.php>.

Wallechinsky, David. "Securities and Exchange Commission (SEC)." AllGov -

Departments. N.p., 2015. Web. 10 Mar. 2016. <http://www.allgov.com/

departments/independent-agencies/

securities-and-exchange-commission-sec?agencyid=7357>.

Brinkley, Alan. The Unfinished Nation: A Concise History of the American People. 6th ed. Boston: McGraw Hill, 2004. Print, 629.

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