What is the purpose of the SEC?

The Securities and Exchange Commission (SEC) is primarily established to enforce federal securities laws, which are designed to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation. The SEC oversees securities transactions, activities of financial professionals, and the stock market to ensure that all participants have equal access to important financial information. This transparency helps in preventing fraud and misrepresentation in the securities industry.

While regulation of bonds and real estate markets, protection of corporate assets, and auditing of public companies may involve some aspects of the SEC’s work or overlap with other agencies and regulations, they do not encapsulate the core purpose of the SEC. The SEC's focused mission on the enforcement of federal securities laws is what empowers it to monitor market activity and safeguard investors’ interests directly.