Explanation of how the 1933 and 1934 Acts were reactions to financial crisis arising from similar challenges 350-700 words
Explanation of how the 1933 and 1934 Acts were reactions to financial crisis arising from similar challenges.
The financial challenges that led to the Acts of 1933 and 1934 were the Wall Street Crash of 1929. This was the most harmful market crash in the US. During the twenties there was wealth and excess and even though there were warnings that speculation could lead to losses, many were optimistic the stock market could continue with the unreasonable high prices. When in October 1929 the actual crash occurred the result was devastating. This marked a period of economic decline.
One challenge was the there was a need for timely information about the issuer of new stocks. The 1933 Act fulfilled that need. However, there was a similar challenge related to the stocks that were being traded ...
Acts of 1933 and 34 are discussed very comprehensively in this explanation..