Securities Exchange Act of 1934 (SEA)

Created to govern securities transactions on the secondary market after issue, ensuring greater financial transparency and accuracy and less fraud or manipulation. The SEA authorized the formation of the U.S. Securities and Exchange Commission (SEC), the regulatory arm of the SEA. The SEC has the power to oversee securities, such as stocks, bonds and over-the-counter securities, markets and the conduct of financial professionals including brokers, dealers and investment advisers, and monitor the financial reports that publicly traded companies are required to disclose.