The Securities Exchange Act of 1934 (SEA) was created to govern securities transactions on the secondary market, after issue. Its goal was to ensure greater financial transparency and accuracy and less fraud or manipulation. The SEA authorized the formation of the Securities and Exchange Commission (SEC), the regulatory arm of the SEA. The SEC has the power to oversee securities—stocks, bonds, and over-the-counter securities—as well as markets and the conduct of financial professionals, including brokers, dealers, and investment advisors. It also monitors the financial reports that publicly traded companies are required to disclose¹.