Describe the function of Securities and Exchange Commission (SEC)
The Securities and Exchange Commission (SEC) is a regulatory agency that oversees and enforces the federal securities laws in the United States. Its primary function is to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation.
The SEC oversees securities exchanges, securities brokers and dealers, investment advisers, and other market participants to ensure compliance with securities laws, such as the Securities Act of 1933 and the Securities Exchange Act of 1934. The SEC also investigates and prosecutes individuals and companies engaged in fraudulent or manipulative practices in the securities markets.
In addition to enforcement, the SEC also provides guidance and education to investors and market participants, conducts research and analysis on market trends and issues, and proposes and implements regulations to protect investors and promote market efficiency.
Overall, the SEC plays a critical role in maintaining the integrity of the securities markets and ensuring that investors are protected from fraudulent or unethical practices.