The Securities and Exchange Commission was formed as a result of the stock market crash of 1929. During the crash, the market value of securities listed on the New York Stock Exchange dropped 83%, from $89 billion to $15 billion. Some of the causes of the crash were found to be a pre-crash speculative frenzy, artificially inflated trading activity, false and misleading information published by companies listed on the exchange, and insider trading.1Congress passed the Securities Act of 1933 and the Securities Exchange Act of 1934 to regulate companies that wanted to raise capital through the financial markets. The SEC was formed in 1934 to enforce these laws, protect investors, and maintain the integrity of the markets. SEC investigations have been a vital tool to allow the SEC to fulfill its objectives.