What is the main purpose of the Securities and Exchange Commission (SEC)?

The main purpose of the Securities and Exchange Commission (SEC) is to protect investors and maintain fair, orderly, and efficient markets. This regulatory body was established to oversee the securities industry and ensure that the securities markets operate transparently and equitably. One of its primary missions is to protect investors from fraudulent practices and to foster trust in the financial system, thereby encouraging investment in securities.

The SEC achieves its goals through oversight of the securities industry, enforcing compliance with securities laws, and ensuring that companies provide full and fair disclosure of their financial information. By promoting market integrity and ensuring that all participants have access to crucial information, the SEC plays a vital role in the overall stability and functionality of the financial markets.