Replies to post #267067 on Spongetech Delivery Systems, Inc. (fka SPNGQ)

[TEX]

yes--in other words, companies subject to provisions of the Exchange Act.

[TEX]

OK, look, here's several excerpts from an amalgamated answer. Some specifics may not be up to date, but the principles haven't changed (emphasis is mine):

The Securities Exchange Act of 1934 was created to provide governance of securities transactions on the secondary market (after issue) and regulate the exchanges and broker-dealers in order to protect the investing public.

The following may be too subtle, but...

Law governing the securities markets, enacted June 6, 1934. The act outlaws misrepresentation, Manipulation, and other abusive practices in the issuance of securities. It created the Securities and Exchange Commission (SEC) to enforce both the Securities Act of 1933 and the Securities Exchange Act of 1934.

The Securities Exchange Act of 1934 (P.L. 73-291, 48 Stat. 881) was the first federal legislative initiative specifically intended to regulate stock exchanges and publicly held companies that have distributed securities (i.e., stocks and bonds) to the public.

The act completed the work that Congress started with the Securities Act of 1933, by insuring traders had the ability to make intelligent investment decisions through full and truthful disclosure. The 1933 Act mandated disclosures when companies distributed securities, and the 1934 Act mandated disclosures when a company publicly traded its securities.

The Securities Exchange Act of 1934 is a law governing the secondary trading of securities (stocks, bonds, and debentures) in the United States of America. The Act, 48 Stat. 881 (enacted June 6, 1934), codified at 15 U.S.C. § 78a et seq., was a sweeping piece of legislation. The Act and related statutes form the basis of regulation of the financial markets and their participants in the United States. It is commonly referred to as the "Exchange Act", the "'34 Act", and the "Act of '34".

Companies raise billions of dollars by issuing securities in what is known as the primary market. Contrasted with the Securities Act of 1933, which regulates these original issues, the Securities Exchange Act of 1934 regulates the secondary trading of those securities between persons often unrelated to the issuer. Trillions of dollars are made and lost each year through trading in the secondary market.

As mentioned, not everything in this long post is up to date, but the references are pretty good:

http://www.answers.com/topic/securities-exchange-act-of-1934