What is the primary role of the Securities and Exchange Commission (SEC)?

The primary role of the Securities and Exchange Commission (SEC) is to regulate the securities industry and protect investors. This encompasses a wide range of activities aimed at ensuring transparent and fair practices in the financial markets. The SEC enforces federal securities laws, oversees the securities industry, and is responsible for ensuring that investors have access to essential information about securities being offered for sale. This protects investors from fraud, insider trading, and other unethical practices while promoting market efficiency and fair dealings.

The SEC's responsibilities include reviewing and approving registration statements for companies that wish to go public, monitoring corporate disclosures, and ensuring compliance with regulatory requirements. By fulfilling these roles, the SEC aims to maintain investor confidence in the securities markets and create a stable, orderly market environment.