Stock-Market Laws: Comparison Between United States Of America And The European Union


The stock market is the particular market in which the desired shares of the public companies are traded as well as issued with the help of exchanges over the entire counter markets. There are many differences between the stock market of the USA and European nation in terms of listing of the cost, different types of the trading stocks. NYSE is one of the auction markets, matching the highest bid with that of the lowest one. NASDAQ is the dealer market that helps the dealer to come in direct contact with the investors. NYSE is based on electronic and floor trade system. NASDAQ is the computerized system as well as it acts as a high-tech organization for the respective start-ups., but NYSE serves as a home for the oldest firms.


It is a matter of fact that the listing cost of NYSE is higher than NASDAQ. There were five of the necessary laws of federal securities related to the stock market of United States of America, they are:

  • Securities Act (1933): This act included the desired regulation in the distribution of the new securities
  • Act of securities exchange (1934): Regulation of the trade securities, exchanges and the broken were the important aspects of this particular act
  • Act of trust indenture (1939): Debt securities were considered to be the most important
  • Act of the investment company (1940): Mutual funds were regulated
  • Act of investment advisor (1940): Investment advisors were regulated
  • The security act of 1933 was considered to be the true law related to the complete security. The receiving of the financial related information was imperative for the investors under this particular act.


Law of stock exchanges within the European Union was mainly for widening the ranges of the desired investment with protecting the investors. The regulation 600/2014 and the directive 2014/65 were mainly adopted to form a legal framework for the requirements of the investments firms, data services, and the regulated markets. Directive 2014/65 was primarily for the authorization of the business related to the different investment firms. The protection related to the bankruptcy was most important for the investors as well as for the regulatory authorities throughout the European Union. In case of the failure of the investment of the firm, it was the responsibility of all the member states to provide the desired compensation for the respective investors.