What is the primary role of the Securities and Exchange Commission (SEC)?

The primary role of the Securities and Exchange Commission (SEC) is to oversee securities transactions and protect investors. This entails ensuring that the securities markets operate fairly and efficiently, which is crucial for maintaining investor confidence. The SEC achieves this by enforcing rules and regulations that promote transparency and prevent fraud in the financial markets. By requiring companies to disclose important financial information, the SEC helps investors make informed decisions, thereby safeguarding their interests.

This role is distinct and separate from the functions of enforcing tax laws, regulating interstate trade, or governing all business operations, which are responsibilities of different governmental entities or regulatory bodies. Thus, the focus of the SEC is strictly on the regulation of the securities industry and the protection of investors rather than broader aspects of business or trade regulation.