What major regulatory reform followed the Great Depression?

What major regulatory reform followed the Great Depression?

• A. Dodd-Frank Act
• B. Jumpstart Our Business Startups
• C. Sarbanes-Oxley
• D. Establishment of the US Securities and Exchange Commission in 1934

Answer: (D)

After the Great Depression, the pivotal reform was to create a federal regulator for the securities markets. In 1934 Congress established the U.S. Securities and Exchange Commission to oversee securities exchanges, register and regulate brokers, and enforce securities laws. This centralized body was designed to curb fraud, insider trading, and misrepresentation, while requiring companies to disclose essential information to investors. The aim was to restore trust and bring transparency to capital markets after the 1929 crash. The other reforms listed came later and addressed different crises or governance concerns, not the immediate post–Depression response.

After the Great Depression, the pivotal reform was to create a federal regulator for the securities markets. In 1934 Congress established the U.S. Securities and Exchange Commission to oversee securities exchanges, register and regulate brokers, and enforce securities laws. This centralized body was designed to curb fraud, insider trading, and misrepresentation, while requiring companies to disclose essential information to investors. The aim was to restore trust and bring transparency to capital markets after the 1929 crash. The other reforms listed came later and addressed different crises or governance concerns, not the immediate post–Depression response.