Read the given and answer in regards to article: Do you feel the Acts were appropriate actions for the government to take? Where they effective?
"The Securities Act of 1933 in its time was the first federal legislation that addressed issues that deal with sale of securities. Before this federal legislation it was the states that mainly governed anything that had to do with the sale of company securities. It was the 1929 market crash that brought about this legislation as there were some serious questions raised as to the effectiveness of how the markets were being governed.
It was important for the federal government to find a way to bring back stability to the markets as well as investor confidence in how the markets were governed. The legislation addressed the need for better disclosure by requiring companies to register with the Securities and Exchange Commission. Registration ensures companies provide the SEC and potential investors with all relevant information by means of the prospectus and registration statement. It was because of the issues that transpired in the crash of 1929 that invoked the public protection issues of this act.
The Securities Exchange Act of 1934 was created to provide protection of security transactions on the secondary market and regulate the exchanges and broker dealers in order to protect the investing public. All companies listed on stock exchanges must follow the requirements set forth in the Securities Exchange Act of 1934. Primary requirements include registration of any securities listed on stock exchanges, disclosure, proxy solicitations and margin and audit requirements."