Securities Investment Protection Act

Investment Protection Act, and the Environment

The events leading to the enactment of the Securities Investment Protection Act of 1970, began with the creation of stock exchanges in the United States. Informal trading in the shares of limited liability companies began in the American Colonies around 1725, five years after the South Sea Bubble. This trading grew out of an auction market that had developed at the foot of Wall Street in New York City. The auction market dealt extensively in commodities, particularly wheat and tobacco. The trading of financial securities was slowly introduced into the auction market.

Informal securities trading in the American Colonies continued to grow at a steady pace. Trading in financial securities was stimulated to a significant extent, however, in 1790, subsequent to the American Revolution. In 1790, Alexander Hamilton, as Secretary of the Treasury, in the postConstitution government of the United States, recommended that the new federal government fund all Revolutionary War bonds issued both by the Continental Congress and the governments of the 13 colonies.

The Hamilton proposal ignited intense speculation in the Revolutionary bonds, and, in 1790, the first stock exchange in the United States, the Philadelphia Stock Exchange, was established. With the birth of the Philadelphia exchange, the first formal stock market in the United States was cr

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ears, however, the New York Stock Exchange emerged as the primary American stock market. The financial panic of 1873 created the first really severe crisis for the American stock market. As a consequence of the panic, the New York Stock Exchange was closed down for 12 trading days. The second major crisis for the American stock market stemmed from the Crash of 1929. Although the dates for the Crash of 1929 are often cited as October 2829, some analysts contend that the crash began approximately twoweek earlier, and lasted into November.1 Actually, the crash of 1929 was much longer than those few weeks. The DowJones Industrial Average had reached a high point in lateSeptember 1929, at 216. While the average reached a 1929 low in November of that year, in actuality, the market maintained a steady downward trend, with a few relatively minor upticks, for the next twoandonehalf years, reaching a low point of 34 in June 1932. Only subsequent to that time did the market begin an upward trend which was sustained over a number of years. The crash of 1929, thus, was in reality the crash of 19291932. The Crash of 1929 was not the cause of the country's economic problems. Rather, the market crash was a symptom of problem
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Some common words found in the essay are:
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Approximate Word count = 2511
Approximate Pages = 10 (250 words per page)

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