What does Securities Exchange Act of 1934 mean? Read on to discover the definition & meaning of the term Securities Exchange Act of 1934 - to help you better understand the language used in insurance policies.
Securities Exchange Act of 1934
The Act and its accompanying rules were enacted to protect investors in connection with the trading of securities already issued and outstanding. The most important components of the Act are Section 10(b) and Securities and Exchange Commission (SEC) Rule 10b-5, which prohibits manipulative or deceptive acts in connection with the purchase or sale of a security. Corporate directors and officers are frequently the targets of lawsuits brought under these antifraud provisions.
We hope the you have a better understanding of the meaning of Securities Exchange Act of 1934.