es the registration of new securities and the disclosure of relevant information about the securities by the issuer. The disclosure provisions of this act provide the framework for a major segment of the operations of the SEC. This act also prohibits misrepresentation and fraud in the sales of securities.
The second major piece of federal securities legislation was the Securities Exchange Act of 1934. This act extended the provisions of the 1933 act to secondary securities markets, required the registration of national exchanges, brokers, and dealers of securities, and established the Securities Exchange Commission to administer the provisions of both of the securities acts (Sharpe 1988, 74).
The responsibilities of the SEC have been expanded by additional legislation since its creation. In 1935, the Public Utility Holding Company Act brought corporations of this type under the regulation of the SEC, and the Bankruptcy Act of 1938 required that the SEC to advise courts in the r
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