Securities Exchange Act of 1934 Law and Legal Definition

The Securities Exchange Act of 1934 is a law governing the secondary trading of securities (stocks, bonds, and debentures) in the United States of America. The 1934 Act also established the Securities and Exchange Commission (SEC),the agency primarily responsible for enforcement of United States federal securities law.

Contrasted with the Securities Act of 1933, which regulates these original issues in the primary market, the Securities Exchange Act of 1934 regulates the secondary trading of those securities between persons often unrelated to the issuer, frequently through brokers or dealers.