What did the Securities Act of 1935 establish?

The Securities Act of 1935 is significant because it established the Securities and Exchange Commission (SEC), which was created to regulate the securities industry and protect investors. The SEC's primary role is to enforce federal securities laws, oversee the securities industry's self-regulatory organizations, and ensure that the securities markets operate fairly and honestly. This was particularly important in the context of the Great Depression, as there was a strong need for reform in how securities were traded, to increase transparency, and to restore public confidence in the capital markets.

The SEC was instrumental in providing oversight and ensuring that companies publicly disclose financial information, thereby helping to prevent fraud and promoting informed investment. This foundation laid out by the Securities Act of 1935 established a structured regulatory environment that has a lasting impact on how securities are issued and traded in the U.S. market today.