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Finance a la shmoop what is the 1934 Securities and Exchange Act? okay if

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you're going to exchange securities like trade stocks and bonds among yourselves [Stocks and bond exchange between man and woman]

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well then there have to be rules right yeah you'd think well there didn't used

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to be and then aunt 1934 came along and well she set the table the key element [Aunt setting dinner table]

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that 34 Act created was the SEC itself it's not a football conference near

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Florida it was a wise creation because it recognized that well whatever the

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world looked like in 1934 it was highly likely that 50 years later it would look

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a whole lot different and while horses and buggies went away [Horse and carriage disappears]

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while that wasn't the case for stocks and bonds and keep in mind that another

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Act was created a year earlier cleverly named yes the Securities Act of 1933

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while that act focused on primary shares that is original shares like the kind

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sold in an IPO well the 1934 Act was all about shares

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traded after that initial set it's called the secondary market where

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secondary shares are traded not primary ones well this new law made the New York [Group of people dealing in stock market]

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Stock Exchange a big deal with big powers and made insider trading illegal

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and believe it or not it really wasn't illegal back then and it you know thus

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paved the way for many exciting Wall Street movies where greed is sometimes

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good and sometimes not [List of Wall Street movies]

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