Which organization is responsible for enforcing the Securities Exchange Act?

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Discover Texas Aandamp;M University's MGMT209 exam! Study using flashcards and multiple choice questions, complete with hints and explanations. Prepare effectively for your test!

The Securities Exchange Act is primarily enforced by the Securities and Exchange Commission (SEC). This organization was established to regulate the securities markets and protect investors. The SEC has the authority to enforce compliance with the provisions of the Securities Exchange Act, which includes overseeing the securities industry, ensuring fair and efficient markets, and facilitating capital formation.

The SEC is responsible for creating rules and regulations that govern the activities of corporations, brokers, and investment advisers. Through its enforcement actions, the SEC seeks to deter and penalize misconduct, such as insider trading, fraud, and violations of disclosure requirements. Its role is critical in maintaining the integrity of the securities markets.

While other organizations like the Federal Trade Commission, Financial Industry Regulatory Authority, and Department of Justice also play roles in regulating aspects of business and finance, they do not have the same charge as the SEC regarding the enforcement of the Securities Exchange Act specifically. The SEC's focused mandate makes it the correct choice for this question.