Which law governs the trading of securities in secondary markets?

The Securities Exchange Act of 1934 is the law that governs the trading of securities in secondary markets. This act was pivotal in establishing regulations to oversee the securities industry and to protect investors following the stock market crash of 1929. It primarily focuses on the trading of securities after they have been issued, which is the essence of secondary market activities.

The 1934 Act created the Securities and Exchange Commission (SEC), which is responsible for enforcing federal securities laws and regulating the securities industry, including trading practices on exchanges and over-the-counter markets. It mandates requirements for reporting by publicly traded companies and requires disclosure of information to ensure transparency and protect investors.

The other laws mentioned serve different purposes and regulate either initial securities offerings, like the Securities Act of 1933, or focus on litigation aspects related to securities, such as the Private Securities Litigation Reform Act of 1995. The Sarbanes-Oxley Act of 2002 primarily addresses corporate governance and the accountability of companies, especially in response to accounting scandals rather than the mechanics of trading itself.