Which act was created to prevent unfair trade practices in the securities market?

The Securities Exchange Act of 1934 was established to prevent unfair trade practices in the securities market by regulating trading and ensuring transparency and fairness. This act was a response to the stock market crash of 1929 and aimed to restore investor confidence by providing a framework for the regulation of the securities industry. It created the Securities and Exchange Commission (SEC), which was tasked with enforcing federal securities laws, overseeing securities transactions, and protecting investors against fraudulent practices.

Among its provisions, the act requires publicly traded companies to disclose financial and other significant information, thereby making it more difficult for manipulative practices to go unnoticed. This regulatory oversight helps to maintain a fair and efficient market environment, ensuring that all investors have access to the same information when making investment decisions.

The other laws mentioned serve different purposes. The Securities Act of 1933 focuses on the registration of securities and the disclosure of important financial information to potential investors at the time of offering. The Sarbanes-Oxley Act primarily addresses corporate governance issues and enhances the accuracy of financial disclosures. The Insurance Company Act of 1940 regulates the operations of insurance companies and does not pertain specifically to the prevention of unfair trade practices in the securities market.