A Study Of The Securities Regulation In America During The New Deal (1929-1945)

If take the development of American stock markets into a long period analysisframework, we will find that it follows a "laissez-faire——regulation– conditional laissez-faire " track. The period discussed in this paper is the critical phase that from laissez-faire transformation for strict supervision.In this period, the arrival of the Great Depression led to a wide range of existing regulatory system failure and the gradual establishment of new system, and had a profound impact on American stock market and the whole financial system. So the study of institutional change will help us to deepen the understanding of American securities regulatory system.This paper is divided into three parts. The first part describes the background, and research the practice of securities regulation before 1929 in time sequence. This chapter first discuses the origin and development of the American stock market briefly, and analyses the early regulation on securities Industry; Then this chapter discusses the role of industrialization in promoting the of the securities market, investigating the institution on government regulation and industry self-regulation respectively. At last, this chapter discusses the practice of securities regulation in late 19th and early 20th century, and summarizes the content of this chapter.The second part of this part discusses the securities regulatory institution during the Hundred Days Deal on the basis of plenty of primary sources. The beginning of this chapter discusses the historical conditions and institutional environment, namely the impact of the Great Depression and Pecora Hearings influence on the whole society and the importance of institutional change; Subsequently this part introduced a series of laws enacted in that period, making a fair evaluation of its impact combined with the historical background. The end of this chapter revaluates the institutional change of securities regulation with the approach of new institutional economics.The third part of this paper mainly discusses the evolution of securities change of securities regulation. This chapter is divided into four parts, The beginning of this chapter analyses the contents and impact of《The securities exchange act of 1934》, discussing the role of SEC in the development of securities market subsequently. The second part of this chapter introduced the significance of other legislations in that period briefly, the following part research the transformation of the self-regulation in securities industry during that period, and points out its background and significance. The last part of this chapter makes a comprehensive analysis of the institution in securities regulation during the New Deal with institutional change model in the long period framework, and evaluates the transformation objectively.