Final answer:
The Securities Exchange Act of 1934 created the SEC to regulate the securities industry, including exchanges and credit associated with securities transactions. It did not directly regulate new issues, but such regulation is covered under the Securities Act of 1933.
Step-by-step explanation:
The Securities Exchange Act of 1934 was groundbreaking legislation that had a significant impact on the financial industry. Among its many provisions, the Act accomplished three key things:
- Created the SEC (Securities and Exchange Commission), which plays a crucial role in overseeing and regulating the securities industry.
- Provides for the regulation of exchanges, setting the stage for how securities exchanges like the NYSE operate and are regulated.
- Provides for the regulation of credit, including the regulation of 'on margin' buying, which had contributed to the stock market crash in 1929.
It's important to note that the Act did not directly provide for the regulation of new issues; that role was largely taken up by the Securities Act of 1933. Together, these acts form the cornerstone of securities regulation in the United States.