Which act was created to regulate market manipulation and fraudulent practices?

The Securities Exchange Act of 1934 was specifically enacted to address and regulate issues related to market manipulation and fraudulent practices in the securities industry. This act established the Securities and Exchange Commission (SEC), which is responsible for enforcing federal securities laws, overseeing the securities industry, and protecting investors.

By putting in place reporting requirements, the act aimed to promote transparency and integrity in the markets. It prohibited various forms of market manipulation, such as insider trading and false information dissemination, which can undermine the fairness of the financial markets. The provisions in this act are essential for maintaining the trust of investors and ensuring that securities markets operate efficiently.

Other acts mentioned, such as the Sarbanes-Oxley Act of 2002, focus more on corporate governance and accounting practices in the wake of major financial scandals, while the Investment Advisers Act of 1940 concentrates on regulating investment advisers. The Securities Investor Protection Act provides coverage to investors in cases of brokerage firm failures but does not specifically target manipulation or fraudulent practices in the market.