Which Commission was established in 1934 to oversee stock exchanges and combat fraud in the securities industry?

The Securities and Exchange Commission (SEC) was established in 1934 as a response to the stock market crash of 1929 and the Great Depression that followed. The primary purpose of the SEC is to oversee securities transactions, activities of financial professionals, and mutual fund trading to protect investors and maintain fair and orderly functioning of the securities markets. It was created to enforce federal securities laws and regulate the securities industry, which was crucial given the rampant fraud and abuse in the financial markets during that time period.

The establishment of the SEC represents a significant shift in how the government intervened in the economy, particularly in the financial sectors, demonstrating a commitment to increasing transparency and safeguarding the interests of investors. This action was part of a broader set of reforms known as the New Deal, aimed at stabilizing the economy and preventing future financial disasters.