What landmark law passed in 1890 prohibits trusts and monopolies in the marketplace?

The Sherman Antitrust Act, enacted in 1890, is considered a foundational piece of legislation aimed at maintaining competition in the marketplace by prohibiting trusts and monopolies. This act was established to combat anti-competitive practices that hindered fair trade and harmed consumers. By making it illegal to restrain trade or commerce through unfair competition, it laid the groundwork for future antitrust laws.

This law is particularly notable because it marked the federal government's first significant effort to regulate and control anti-competitive behaviors affecting the economy. The Sherman Antitrust Act provided the framework for subsequent legislation, influencing how businesses operate and how regulators can intervene to promote market fairness.

The other options refer to different legislation: the Securities Exchange Act regulates securities transactions to protect investors; the Clayton Antitrust Act expands on the Sherman Act by addressing specific practices such as price discrimination and exclusive dealing; and the Federal Trade Commission Act created the Federal Trade Commission to enforce antitrust laws. While all these laws contribute to competition policy, it is the Sherman Antitrust Act that specifically addresses the prohibition of trusts and monopolies established in the late 19th century.