Why did Congress create the SEC?

Congress held hearings to identify the problems and search for solutions. Based on its findings, Congress – in the peak year of the Depression – passed the Securities Act of 1933. The following year, it passed the Securities Exchange Act of 1934, which created the SEC. The main purposes of these laws can be reduced to two common-sense notions:

What did Congress do after the stock market crash?

Following the stock market crash in October 1929, Congress met to search for and identify a means of restoring public confidence in the U.S. markets. Based on its research, Congress passed the Securities Act of 1933, followed by the Securities Exchange Act of 1934, the latter of which established the SEC.

What was the purpose of the Securities Act of 1933?

The U. S. Securities and Exchange Commission (SEC) has a three-part mission: When the stock market crashed in October 1929, so did public confidence in the U.S. markets. Congress held hearings to identify the problems and search for solutions. Based on its findings, Congress – in the peak year of the Depression – passed the Securities Act of 1933.