What is the primary role of the SEC?

The primary role of the SEC, or the Securities and Exchange Commission, is to regulate and monitor the securities industry. This includes overseeing securities exchanges, broker-dealers, investment advisors, and mutual funds. The SEC's mission is to protect investors, maintain fair and efficient markets, and facilitate capital formation. By enforcing securities laws, the SEC helps to ensure that the market operates in a fair and transparent manner, which is vital for maintaining investor confidence and the integrity of the financial system.

The regulation involves requiring companies to disclose meaningful financial and operational information to the public, thus enabling investors to make informed decisions. This vigilance is crucial in preventing fraud and malpractices within the securities markets.