FDR and The Stock Market
After the stock market crashed in 1929, the public lost confidence in the markets. Small and large investors and banks who loaned to them had lost tons of money as a result of the Great Depression. People agreed that if the economy wanted to be restored, the public needed to regain their confidence in the markets. This led to the establishment of the SEC (Securities Exchange Act). The SEC worked to bring back investors confidence in capital markets by providing the markets and investors with fixed rules about honest dealing and reliable information.