Andrew Rapp

Commissioned

Enacted June 1934- Current

 

Purpose

            The purpose of the Securities and Exchange Commission was to police the stock market (Brinkley.629). The Commission was being led by Joseph P. Kennedy its first chairman (Hakim.73). The SEC attempted to achieve the purpose of policing the stock market by requiring public corporations to register their stocks (History.com). The commission monitored the required financial disclosures (Hanna.259). In 1935 the Public Utility Holding Company Act allowed the SEC to break up large utility combinations into smaller geographically based companies so that not too much power was put into the hands of a few allowing for frauds and further abuse of power (History.com). The SEC protected the economy from big crashes and protected small brokers from larger brokers who could control the market (thefreedictionary).

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Critiques, Those Affected, Liberal Program

Those who were hurt by the SEC were the companies that mislead the investors with misleading proxy statements (thefreedictionary). The result of misleading investors would getting shut down for up to seventy days or entirely closed down if the problems could not be fixed (Cornell.edu). Critiques accused the SEC of hurting the economy as stocks averaged lower the years after the SEC was formed but within several years the economy slowly recovered (indicant). The SEC is still in control of the stock market making sure there are no frauds so I would say the SEC was successful on the long run (SEC.gov). The Commission did not create immediate relief but after being commissioned slow recuperation of the economy was seen (indicant). The SEC is seen as a liberal program as the SEC is giving the government more power to control the people in contrast to a conservative program which gives the people personal responsibility (Studentnewsdaily).

 

 

 

 

 

 

 

 

 

 

 

Citations

-Brinkley, Alan. The Unfinished Nation: A Concise History of the American People. Vol. 1. Boston: McGraw-Hill, 2004. Print.

-Hakim, Joy. War, Peace, and All That Jazz. New York: Oxford UP, 1995. Print.

-"Securities and Exchange Commission." History.com. A&E Television Networks, n.d. Web. 17 Feb. 2016.

-Cornell University. "Securities Exchange Act of 1934." LII / Legal Information Institute. Cornell Law, n.d. Web. 17 Feb. 2016.

-Farlex. "Securities Exchange Act of 1934." TheFreeDictionary.com. N.p., n.d. Web. 17 Feb. 2016.

-Hanna, John. "THE SECURITIES EXCHANGE ACT AS SUPPLEMENTARY." Http://scholarship.law.duke.edu/cgi/viewcontent.cgi?article=1859&context=lcp&sei-redir=1&referer=http%3A%2F%2Fwww.bing.com%2Fsearch%3Fq%3DWho%2520was%2520protected%2520by%2520the%2520Exchange%2520Act%26qs%3Dn%26form%3DQBRE%26pq%3Dwho%2520was%2520protected%2520by%2520the%2520exchange%2520act%26sc%3D0-26%26sp%3D-1%26sk%3D%26cvid%3D74DCA2C2B76148CBBFFA16000677D98E#search=%22Who%20protected%20by%20Exchange%20Act%22. Duke, n.d. Web. 17 Feb. 2016.

-"Conservative vs. Liberal Beliefs." Student News Daily Conservative vs Liberal Beliefs Comments. Student News Daily, 2005. Web. 17 Feb. 2016.

Pictures

background- http://img14.deviantart.net/9e91/i/2009/067/1/1/wallpaper__yosemite_snowscape_by_abcdefghijkl0l.jpg

Stock graph- http://www.indicant.net/Non-Members/Tours/LTI%20Tour/LT%201930-40.gif

Joseph P. Kennedy- https://upload.wikimedia.org/wikipedia/commons/6/6d/Joseph_P._Kennedy%2C_Sr._1938.jpg

SEC Symbol- http://mnbeeractivists.com/Media/2013/09/us-securities-and-exchange-commission.jpg