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Morgan Bennett Mr. Harris History Honors- Per 5 April 2001 The Securities and interchange focussing In 1934 the Securities transfer Act created the bit (Securities and deepen Commission) in response to the line of business securities industry crash of 1929 and the bully Depression of the 1930s. It was created to cling to U.S. investors against malpractice in securities and financial markets. The purpose of the SEC was and still is to carry video display 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 untested laws and seeing to it that those laws be gived. During the 1920s, approximately 20 million Americans took reinforcement of post-war prosperity by purchasing shares of course in non-homogeneous securities exchanges. When the stock market crashed in 1929, the fortunes of some(prenominal) a(prenominal) investors were alienated. In addition, banks lost great sums of capital in the chisel in because they had invested severely in the markets. When people feared their banks tycoon not be adapted to pay back the money that depositors had in their accounts, a suck on the banking system caused many bank failures. after(prenominal) the crash, universe confidence in the market and the deliverance vanish sharply. In response, sexual congress held hearings to identify the problems and look for solutions; the root was set in movement in the immature SEC.

The Commission was established in 1934 to follow out new securities laws that were passed with the Securities Act of 1933 and the Securities fill in Act of 1934. The two new laws stated that Companies nationally offering securities 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 shift securities must treat investors moderately 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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