Developments in the United States
Introduction
The formation of the Securities and Exchange Commission (SEC) can be traced back to the 1930s. The stock market collapse in 1929 destroyed public confidence in the financial markets. It has been contended that, among other factors, one reason for the crash was the poor state of economic intelligence (Galbraith 2009). Investors, both large and small, banks, and financial institutions lost large sums of money. There was a consensus that for the economy to recover, the public’s faith in the capital markets needed to be restored. It fell to Congress to identify the problems and recommend solutions. In 1933, the Securities Act was passed and this was followed in 1934 by the Securities Exchange ...
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