The Securities Exchange Act is a U.S. law enacted in 1934 that regulates the trading of securities, such as stocks and bonds. Its primary purpose is to protect investors by ensuring transparency and fairness in the securities markets. The Act established the Securities and Exchange Commission (SEC), which oversees the enforcement of securities laws and monitors market activities. This legislation requires companies to disclose important financial information, helping investors make informed decisions. It also addresses issues like insider trading and market manipulation, promoting ethical practices in the financial industry. Overall, the Securities Exchange Act plays a crucial role in maintaining investor confidence in the U.S. financial system.