The Securities Exchange Act of 1934 is a U.S. law that regulates the trading of securities, such as stocks and bonds, in the secondary market. It was enacted to provide transparency and prevent fraud in the securities industry, following the stock market crash of 1929. The Act established the Securities and Exchange Commission (SEC), which oversees and enforces securities laws. This legislation requires companies to disclose important financial information to the public, ensuring that investors have access to accurate data when making investment decisions. It also addresses issues like insider trading and sets rules for the operation of securities exchanges.