What is the primary function of the Securities and Exchange Commission?

The primary function of the Securities and Exchange Commission (SEC) is to regulate the stock market. This is essential for ensuring that investors can trade securities with confidence, knowing that they are protected against fraud and misinformation. The SEC achieves this by enforcing securities laws, overseeing the registration of public companies, monitoring trading practices, and requiring transparency in financial reporting.

By regulating the stock market, the SEC helps maintain fair and efficient markets, which is crucial for the proper functioning of the economy. It plays a vital role in protecting investors and fostering trust in the financial system, which is necessary for encouraging investment and economic growth. This regulatory framework helps to prevent manipulation and insider trading, ensuring that all investors have access to the same information when making investment decisions.