Introduction
The stock market is the most active financial market in the U.S., which includes more than 5000 securities companies, trade associations, the stock exchange, investment banks and other institutions. The stock market can be divided into two level. The primary market including corporation, government agency, and investment bank sells securities to initial buyers, in other words called securities issue. The secondary market resell securities which have been previously issued in primary market. Secondary market can be organized in two ways. One ways is to organize exchanges, “where buyers and sellers of securities (or their agents or brokers) meet in one central location to conduct trades.”(Mishkin Eakins) The other way is to have an over-the-counter (OTC) market. The participants in OTC market trade through telecommunications networks such as telephone, email, and electronic system without a regular location. One of the importance network is the National Association of Securities Dealers Automated Quotation System (NASDAQ). Beyond those, Electronic Communications Networks (ECNs) have been challenging both the organized exchanges and NASDAQ for years. ECNs is a large quantity of stock trading electronic network that connect brokerages and traders so that they can trade directly without intermediaries. There are tens of billions of dollars of stock trading in the market every day. The management of the stock market of U.S. government is to regulate the issue and trading of the stock market and individuals and institutions which are engaging trading business. The management contains the following three contents: government makes federal securities law, Securities Exchange Act and other rules; to establish the regulators of the stock market; all the Exchanges should comply federal securities law and the principle.
The legislation of Federal securities
U.S government manage the stock market through legislation. In addition to the federal securities law, there are state securities law in fifty states. It is difficult to explain every fifty states securities law, I just focus on federal securities law in this paper. The federal securities law cover five main aspects including Securities Act of 1933, Securities Exchange Act of 1934, Trust Indenture Act of 1939, Investment Company Act of 1940, and Investment Advisers Act of 1940. Securities Act of 1933 and Securities Exchange Act of 1934 are the most significant parts of the federal securities law. Congress amends the securities laws several times for supplement and perfection. As known as Securities Investor Protection Act of 1970, the Insider Trading Sanctions Act of 1984, the Insider Trading and Securities Fraud Enforcement Act of 1988 and the Dodd-Frank Act, these arts are amending to primary five laws. Other laws were issued after 1980s, which contains Private Securities Litigation Reform Act (1995), Sarbanes-Oxley Act of 2002, Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, and Jumpstart Our Business Startups Act of 2012.
Government regulatory agency
U.S. is a typical county that establish a specialized institutions to regulate securities. According to the Securities Exchange Act of 1934, Congress established the Securities & Exchange Commission (SEC) in Washington DC. SEC consists of five Commissioners nominated by the president of U.S. with the confirmation of U.S. Senate. The term is five years. A commissioner would be appointed as chairman and by the President. Normally, the President of U.S. and the chairman of SEC belong to same political party, because it is easy to implement the president's financial policy. According to securities law, no more than three commissioners belong to the same political party in order to limit the president or a party to control SEC directly. Therefore, SEC is actually a non partisan institution. The commissioners can not have other position and can not be engaged securities trading.
The function of SEC is to supervise the interpretation and enforcement of federal securities legislation and to manage and oversee the stock issuance, stock exchange, securities dealers, investment companies. SEC have independent rights, the President has no right to interfere SEC.
The responsibilities of SEC is to “interpret and enforce federal securities laws; issue new rules and amend existing rules” and to investigate the securities law violations and sanction the violators. “The mission of the U.S. Securities and Exchange Commission is to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation.”
To manage and supervise the stock market effectively, to discover and correct the problems of issuing and trading stocks so that the SEC set up five Division: Corporation Finance is to oversee corporation to disclosure information for investors. Trading and Markets is responsible for the management of the rules of stock exchange and supervision of the exchange activities. Investment Management is to oversee mutual funds and investment advisors. Enforcement is to investigate the securities law violations and sanction the violators. Risk, Strategy, and Financial Innovation provide the analysis of economic environment and risk. In addition, SEC also set up multiple offices. There is a figure of the structure of SEC showing below: The management of the stock exchanges
Stock exchange is composed of brokers and traders under certain rules to buy and sell stocks within the prescribed time and location. There are 18 national securities exchanges including 14 securities exchanges r registered in SEC, such as New York Stock Exchange, NYSE MKT, NASDAQ OMX PHLX, Chicago Stock Exchange, NASDAQ OMX BX. New York Stock Exchange is one of the largest exchange. The rules of listed stock in New York Stock Exchange are much more strict than those on the NYSE MKT. Generally, some listed stocks which can sell on other exchanges would not necessarily sell on the New York stock exchange. The listed stocks on New York Exchange are normally powerful companies which are the play a decisive role in the same industry. There are 1867 companies listed stock on New York Exchanges including 1518 U.S. companies and 349 non- U.S. companies. However, there are also some big companies have not been willing to listed on the stock exchange. For some reasons: the cost of issued stock is too high, they are unwilling to public their financial situation and will not be dispersed ownership, or do not want to their stock becoming the object of speculation.
The fourteen registered stock exchange has their own constitution, trading method and system. In recent years, U.S. exchange has formed a set of management and supervision system, such as the New York stock exchange open 5 hours a day; trading method is to take public auction; listed companies of the exchange shall apply to the insurance companies and credit insurance and their financial statement shall report to the exchange, and they should allow the exchange to check their operating conditions at least three time every year. The exchange is strictly prohibited insider staff stock using inside information for stock speculation. The well-known inside trading scandal in 1980s was Marty Siegel who violated the securities laws.
The operation of the Exchange should be overseen by the securities and Exchange Commission. To formulate the rules of the Exchange should associate the principle of exchange of SEC with approval of SEC. Amendments and supplements also must review by the SEC.
The management of over-the-counter (OTC) market
National Association of Securities Dealers (NASD) manage over-the-counter market. In 1939, the Congress passed amendment the securities law to establish the NASD, this is the only registered within the SEC under the oversight and management of SEC. NASD is a “nonprofit organization formed under the joint sponsorship of the investment bankers' conference and the SEC to comply with the Maloney Act, which provides for the regulation of the OTC market.” There are about 3000 registered securities companies in the U.S. More than 90% of them are the members of NASD. The responsibility of the NASD is: to check whether the securities companies to follow the legal requirements and fraud in the transaction and to fair market through the regulation. Therefore, NASD is non-government corporation in a form of self-regulatory for oversight and management. The National Association of Securities Dealers Automated Quotation System (NASDAQ) was established in 1971 providing thousands of stocks’ price to investors through this system. The National Association of Securities Dealers Automated Quotation System (NASDAQ) merged with the American stock exchange (AMEX) in 1998. NASDAQ separated from NASD and become an independent operation. In 2007, member regulation, enforcement and arbitration functions of the National Association of Securities Dealers and the New York stock exchange merged into Financial Industry Regulatory Authority, Inc. (FINRA). The financial industry regulatory authority (FINRA) has more than 3200 employees, located in Washington, D.C. and New York City, there are also 20 local offices in the United States.
The five main missions of FINRA is deter misconduct by enforcing the rules, Discipline those who break the rules, detect and prevent wrongdoing in the U.S. markets, educate and inform investors, resolve securities disputes. In 2003, FINRA disposed 1,535 disciplinary actions and 660 fraud and insider trading cases. Recently, more than 600 million brokers under the supervision of FINRA. the independent regulation of FINRA has played a critical role in the Unite States financial market for years.
Comparison with Chinese Regulation
Many rules of regulation in Chinese securities market source from the United States, but Chinese is much different to the United States security market. The comparison and analysis between the United States security market and Chinese.
First, the difference of development of the securities market. The development of Chinese securities market was a result of spontaneous nature initially. The government gradually began to play a leading role in the market. It is compulsory system vicissitude for the market. There are two aspects roles of government: the regulatory of securities agency to fulfill the functions of public management; the supervision and administration institutions of state-owned assets perform ownership duties. The second function is dominant position in the market. Initially, Chinese securities market is to solve the government (both local government and central government) the shortage of funds, while the traditional bank cannot provide adequate indirect financing. Securities market has become the main tool of state-owned enterprises to solve the shortage of funds during the Chinese economic reform. As the listed corporation, major shareholders, and securities companies is not completely marketized, so the government must force to regulate, the government is the ownership of regulation at the same time.
The U.S. securities market is the outcome of the development of the market economy. Securities & Exchange Commission (SEC), the regulation institution of the U.S. would own the securities market. To maintain fair and orderly of the market is tool of SEC.
Second, difference responsibility of securities regulation. The initial function of Chinese securities regulators is to oversee the market, gradually evolved into regulation and development of the market. It is not protection for public investors. The responsibility of SEC is mainly to protect the interest of public investors. Chinese securities market has become the service of state-owned enterprises to solve the financing. Therefore, the securities regulatory institution would serve for the interest of central government, not just a public regulation operation. Especially, state-owned enterprises began to reform in early 1998, to regulate and develop the market has become the main function of the securities regulatory institution. The establishment and development of Chinese securities institution was in the period of the traction from planned economy to market economy. The securities regulation is indeed a fief, a holdover from the era when the state controlled. The rules of regulation would completely serve to protect government’s interest. As I mentioned previously, the essence of SEC is “maintaining fair, orderly, and efficient markets.”
Third, difference of the internal organization structure. Chinese securities regulator is directly under the State Council to exercise administrative functions determining that it can not oversee the state-owned assets. Chinese securities regulators is nominally the committee system, but actually it is still the system of chief executive responsibility. The securities regulator is under the control of government management system, its power is limited, and have to been adjusted as the term of the government.
SEC is independent organization. It does not need to be responsible for president, also the president has no right to fire Commissioners. enjoy a wide range of power. In order to maintain non-partisan, the term of Commissioners are staggered.
Fourth, the difference of the relationship with law. SEC established on the basis of Securities Exchange Act of 1934, the establishment of SEC is after the federal securities law. Chinese securities regulator was appointed by the Sate Council before enacting the securities law, therefore, the securities law contains government’s interest.
Conclusion
The U.S. stock market has nearly 300 years of development history. There were various events during this time, such as stock crash in1929, the establishment and the collapse of the Bretton Woods system in twentieth Century, international stock storm late 1980s, high-tech stock market bubble in 1990, the trend is still growing. Especially, the United States has high speed development economy since the Second World War. The stock market value is extremely growing. The U. S. stock market to become the world's largest and most developed stock market.

References
Definition of "National Association of Securities Dealers (NASD)" - NASDAQ Financial Glossary(NASDAQ.com)http://www.nasdaq.com/investing/glossary/n/national-association-of-securities-dealers
Definition of "National Association of Securities Dealers Automatic Quotation System (Nasdaq)" - NASDAQ Financial Glossary (NASDAQ.com) http://www.nasdaq.com/investing/glossary/n/national-association-of-securities-dealers-automatic-quotation-system National Securities Exchanges (SEC.gov) http://www.sec.gov/divisions/marketreg/mrexchanges.shtml NYSE Composite Index® (NYSE, New York Stock Exchange > Listings > Indices) http://www1.nyse.com/about/listed/nya_characteristics.shtml Working for Investors Since 1939 (About FINRA) http://www.finra.org/AboutFINRA/