the US passed many additional laws during the 30's to prevent a stock market crash from re-occurring so that the economy would not falter so badly again. The United States government made changes in the regulation of stock exchanges, providing much greater protection for investors. If something like The Stock market crash started again federal bureaus would step in and attempt to prevent it. However, this is of little importance since many of the causes of the 1929 crash are now illegal. First of all commercial banks are no longer allowed to invest in stocks. Second, the Federal Reserve now has greatly increased power over interest rates. Which gives them much greater head power to prevent a crash. The Exchange Act of 1934 regulated stock market trading. These acts gave investors more piece of mind because they knew more about what they were buying or investing in and it also gave them more protection from fraud. Another factor that makes it less likely for a crash to occur is the elimination of the big investment trusts, except the mutual funds, which are highly regulated. ...
