Question

the securities exchange act of 1934 gave the sec the power to: group of answer choices police all security transactions control the organized exchanges deal with commodities as well as stocks oversee real estate exchanges control speculation in the stock market

Answer 1

The Securities Exchange Act of 1934 enabled the SEC to regulate and supervise the sale of securities, police all security transactions on exchanges, and control speculation in the stock market, but it does not deal with commodities or real estate exchanges.

Step-by-step explanation:

The Securities Exchange Act of 1934 was a crucial piece of U.S. legislation enacted to regulate the stock market and prevent fraud and manipulation following the market crash of 1929 and the Great Depression. One of its key provisions was the establishment of the Securities and Exchange Commission (SEC), an independent agency with the power to regulate and supervise the sale of securities and the brokers, dealers, and bankers who sell them. This included the authority to police all security transactions that occur on the organized exchanges, as well as oversee and control speculation in the stock market to restore and maintain investor confidence.

The SEC does not directly control the organized exchanges, such as the New York Stock Exchange (NYSE), but it does set rules that the exchanges must follow. Although the SEC has a broad mandate, it does not have jurisdiction over commodities trading or real estate exchanges, as these are overseen by other regulatory bodies such as the Commodity Futures Trading Commission (CFTC) for the former. Its mission has grown over the years and continues to be crucial in today's digital economy where trading extends well beyond traditional exchange floors.

Answer 2

The Securities Exchange Act of 1934 gave the SEC the power to regulate securities, oversee real estate exchanges, control speculation in the stock market, and deal with commodities and stocks. It aimed to prevent stock market crashes and restore confidence in the banking system.

Step-by-step explanation:

The Securities Exchange Act of 1934 gave the Securities and Exchange Commission (SEC) the power to regulate and supervise the sale of securities and the brokers, dealers, and bankers who sell them. It also granted the SEC the authority to oversee real estate exchanges, control speculation in the stock market, and deal with commodities as well as stocks.

The SEC was established to prevent another stock market crash like the one in 1929 and restore confidence in the banking system. It implemented regulations to prevent stock manipulation and insider trading, regulated margin borrowing, and prevented banks from engaging in the securities and insurance industries.

The act also strengthened Congress' authority to legislate under the power to regulate interstate commerce, which allowed for the enforcement of the act.