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

The main function of the Securities and Exchange Commission (SEC) is to protect investors and maintain fair markets. The SEC plays a vital role in ensuring that securities markets operate transparently and efficiently. Its primary purpose is to oversee securities transactions, activities of financial professionals, and corporate mergers and acquisitions, thereby safeguarding investors from fraudulent practices and unfair trading activities. By enforcing securities laws and regulations, the SEC helps to instill confidence in the financial markets, which is essential for the healthy functioning of the economy. This focus on investor protection and market integrity is crucial in fostering trust among consumers and ensuring that the financial system operates smoothly.