Under which act was the SEC created?

The Securities and Exchange Commission (SEC) was established by the Securities Exchange Act of 1934. This act was a response to the stock market crash of 1929 and the economic devastation of the Great Depression. The primary purpose of the SEC is to regulate the securities industry, protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation. By creating the SEC, the government aimed to restore investor confidence and establish a system of oversight to prevent fraud and manipulation in the securities markets.

Each of the other options pertains to significant legislation in the realm of securities regulation but does not involve the creation of the SEC. The Securities Act of 1933 focused on the initial sale of securities and required that companies provide financial disclosures to potential investors. The Investment Company Act of 1940 regulates investment companies and protects investors in that sector. The Trust Indenture Act of 1939 deals with the agreements between bond issuers and bondholders, ensuring the rights of the latter are upheld. While all these acts contribute to the regulatory framework, it was specifically the Securities Exchange Act of 1934 that established the SEC and laid the groundwork for its authority and responsibilities.