Context before interpretation
Historical frame
- Kind
- event
- Period
- June 6, 1934
- Jurisdiction
- United States
The new commission gave federal securities reporting a permanent regulator.
Reader prompts
Questions to carry forward
- How does administering a law differ from preparing a company's financial statements?
- Why do investors need enforcement as well as disclosure requirements?
Claim disciplineEvidence boundaries
- The SEC's 1934 mandate and its current authorities are not identical; later laws and rules expanded and modified the framework.
The Securities Exchange Act of 1934 created the Securities and Exchange Commission (SEC) on June 6, 1934. The law added federal oversight of securities markets and continuing company reporting. Securities include financial instruments such as shares and bonds.
Keep the responsibilities separate. Congress passes laws, the SEC administers and enforces the laws within its authority, and companies prepare their own financial reports. The SEC can set reporting requirements without becoming the company's accountant or auditor. Its responsibilities have changed through later laws and rules, so the creation date does not date every current requirement.