What's the role of the SEC in U.S. stock markets?

Carter

I've been trying to understand how the U.S. stock markets stay fair and transparent. I know the Securities and Exchange Commission (SEC) plays a big role, but I'm not entirely sure what its responsibilities are. Does it just regulate companies, or does it do more? How does it protect investors like me?

Aurora

The SEC is the primary regulator of U.S. securities markets, ensuring fairness and transparency. It enforces laws requiring companies to disclose financial information, preventing fraud and insider trading. It also oversees stock exchanges, brokers, and investment advisors to protect investors.

Gabriel

Beyond regulation, the SEC educates investors, ensuring they have access to accurate information. It reviews corporate filings, monitors market activities for illegal practices, and takes legal action against violators. Its goal is to maintain market integrity and public trust.

Layla

I heard the SEC also approves new stocks before they’re listed. Is that true?

Lily

Layla Not exactly. The SEC doesn’t "approve" stocks but ensures companies meet disclosure requirements before offering shares to the public. Exchanges like the NYSE or Nasdaq handle listing approvals.

Jennifer

Does the SEC have any role in cryptocurrency markets?

Valentina

Jennifer Yes, the SEC regulates crypto assets classified as securities. It pursues fraud cases and demands compliance with securities laws, though oversight is still evolving due to the market's complexity.