Final answer:
The trading of securities in the secondary market is regulated by the Securities Exchange Act of 1934, which established the Securities and Exchange Commission (SEC) to enforce securities laws and supervise market activities.
Step-by-step explanation:
The trading of securities in the secondary market is regulated by the Securities Exchange Act of 1934. This Act was established to regulate and supervise the sale of securities and the brokers, dealers, and bankers who sell them, with the aim of restoring confidence in the financial system after the stock market crash of 1929.
It also led to the formation of the Securities and Exchange Commission (SEC), which enforces federal securities laws, regulates the securities industry, the nation's stock and options exchanges, and other activities and organizations, including the electronic securities markets in the United States.
The Glass-Steagall Act, on the other hand, was primarily concerned with establishing the Federal Deposit Insurance Corporation (FDIC) and separating commercial banking from investment banking.
The Securities Act of 1933 preceded the 1934 Act and addressed the issuing of new securities, mandating registration and full disclosure to the federal government. While the Investment Advisers Act of 1940 regulated advisors to the investment funds, it does not specifically oversee the trading of securities in the secondary market.