Securities rules were developed in response to the Great Depression of the 1930s. To prevent a similar disaster in the future, Congress created the Securities and Exchange Commission under the Securities Exchange Act of 1934. This federal law requires securities to be registered with the SEC before they can be sold, and it requires sellers of securities to disclose information about securities to investors. When a violation of the Securities Exchange Act or another federal law is suspected, the SEC may investigate the circumstances and pursue an enforcement action.