What role does the SEC play in protecting investors?

The Securities and Exchange Commission (SEC) plays a crucial role in protecting investors by ensuring that companies do not manipulate the market. This is achieved through the enforcement of securities laws that require transparency and fairness in the market. The SEC regulates the securities industry and requires publicly traded companies to disclose important financial information, so investors can make informed decisions. This regulatory framework is essential for maintaining investor confidence and promoting a fair marketplace where all participants have access to the same information and are treated equitably.

By actively monitoring trading practices and investigating potential fraud or manipulation, the SEC works to create an environment where investors can trust that the information provided by companies is accurate and reliable. This helps to prevent deceptive practices that could harm investors and allows for a level playing field in the buying and selling of securities.