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Finance Glossary

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Over 700 finance terms, Shmooped to perfection.

1934 Securities And Exchange Act

Definition:

The Securities and Exchange Act of 1934 created the securities and investment world as we know it today.

It's the law that made the New York Stock Exchange a big deal with big powers, and it set up the Securities and Exchange Commission (SEC) to crack down on shady deals. (How successful they are is a matter of much debate at just about every family reunion.) The law also made insider trading illegal, thus paving the way for many exciting Wall Street movies.