Final answer:
The SEC was established under the Securities Exchange Act of 1934, designed to regulate securities sales and restore confidence in the financial markets after the Great Depression. The correct answer is 1.
Step-by-step explanation:
The Securities and Exchange Commission (SEC) was created under the Securities Exchange Act of 1934. The SEC was established to regulate and supervise the sale of securities and prevent malpractices such as stock manipulation and insider trading. Its creation was part of a series of measures to restore confidence in the stock market and banking system after the Great Depression. The enforceable legal standards for disclosure and regulation led to increased investor confidence, essential for a stable financial market. The correct answer is 1.