The law that created the Securities and Exchange Commission (SEC) and gives it broad authority over the securities industry. The SEC can register and regulate brokerage firms, transfer agents, clearing agencies, and self-regulatory organizations (SROs) such as the New York Stock Exchange (NYSE), the American Stock Exchange (AMEX), and the National Association of Securities Dealers (NASD), which operates the NASDAQ stock market. The law prohibits certain conduct and gives the commission disciplinary powers over individuals and companies. The SEC also requires publicly traded companies to periodically report financial information if they have more than $10 million in assets or more than 500 shareholders.
A federal law designed to regulate post-issuance trading of securities by regulating security brokers and exchanges. State regulations are allowed to continue to govern intrastate transactions, as long as they do not conflict with the federal law. The act established the Securities and Exchange Commission.