Which act was responsible for inspecting Wall Street's trading practices and prosecuting fraudulent companies?

The Securities and Exchange Act was instrumental in establishing a framework for regulating the securities industry and ensuring market transparency. Enacted in 1934, it aimed to restore investor confidence in the financial markets following the stock market crash of 1929 by addressing issues of fraud and manipulation that plagued Wall Street.

This act created the Securities and Exchange Commission (SEC), which was tasked with overseeing securities transactions, enforcing securities laws, and prosecuting companies engaging in misleading business practices or fraud. The SEC conducts investigations into trading activities and can take legal action against entities that violate regulations, thereby protecting investors and maintaining fair market operations.

In contrast, the other options, such as the Bank Act of 1933, primarily focused on reforming the banking system, while the National Industrial Recovery Act and the Public Works Administration dealt with economic recovery and job creation during the Great Depression, not directly with the regulation of securities trading practices. Hence, the Securities and Exchange Act is the correct choice for this question.