What does SEC do?

What does SEC do?

• A. Regulates stock and bond exchanges/trading
• B. Regulates radio, public broadcasting, television you get over airways
• C. Insures bank deposits
• D. Controls space missions

Answer: (A)

The main idea here is that the Securities and Exchange Commission oversees the securities markets. It regulates stock and bond exchanges and the trading of securities, and it enforces laws to keep markets fair and protect investors. This includes requiring companies to disclose important financial information, supervising brokers, dealers, and investment advisers, and pursuing fraud and insider-trading cases. That focus on how securities are traded and how investors are protected is what makes this option the best fit. Other options point to different agencies: regulating radio and TV over the air is the Federal Communications Commission; insuring bank deposits is the FDIC; and controlling space missions is NASA.

The main idea here is that the Securities and Exchange Commission oversees the securities markets. It regulates stock and bond exchanges and the trading of securities, and it enforces laws to keep markets fair and protect investors. This includes requiring companies to disclose important financial information, supervising brokers, dealers, and investment advisers, and pursuing fraud and insider-trading cases. That focus on how securities are traded and how investors are protected is what makes this option the best fit.

Other options point to different agencies: regulating radio and TV over the air is the Federal Communications Commission; insuring bank deposits is the FDIC; and controlling space missions is NASA.