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

The primary purpose of the Securities and Exchange Commission (SEC) is to regulate and maintain fair financial markets. Established to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation, the SEC plays a crucial role in ensuring that publicly traded companies disclose accurate and timely financial information. This transparency helps investors make informed decisions and promotes trust in the financial system.

By enforcing securities laws, the SEC ensures that all participants in the financial markets, including corporations, investors, and traders, operate under the same set of rules, which helps to prevent fraud and maintain market integrity. Therefore, its focus on regulation and oversight is central to fulfilling its mission of safeguarding investors and promoting healthy market conditions. The role of the SEC is vital in upholding public confidence in the financial markets, which is key to a functioning economy.