What is the Securities Exchange Act of 1934 and how does it relate to securities fraud?

The Securities Exchange Act of 1934, commonly known as the “Exchange Act”, is a federal law which regulates the trading of securities in the United States. The act was passed in response to the Great Depression of 1929 and was designed to protect investors from deception and manipulation of the securities markets. The Exchange Act established the Securities and Exchange Commission (SEC) to enforce the regulations of the act. The Exchange Act includes provisions that established important regulations such as: the regulation of broker-dealers, disclosure of information to shareholders, and general rules of conduct for public companies. The act also regulates the stock exchanges and provides for the registration of certain securities. The Exchange Act also includes provisions regarding securities fraud, which is the intentional misrepresentation of information to deceive buyers or sellers in order to make a profit. Securities fraud can take many forms, including insider trading, accounting fraud, and Ponzi schemes. In Utah, securities fraud is a serious crime, and is enforced by the Utah Division of Securities. This agency has the authority to investigate violations of securities regulations as well as to prosecute those who violate the law. It is important for individuals to understand the Exchange Act and how it relates to securities fraud in order to protect themselves from being taken advantage of.

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What is the Securities Exchange Act of 1934 and how does it relate to securities fraud?

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