Final answer:
The SEC regulates Wall Street and corporations on the NYSE to protect investors and maintain fair markets.
Step-by-step explanation:
The Securities and Exchange Commission (SEC) plays a critical role in regulating Wall Street and the corporations that sell stock on the New York Stock Exchange (NYSE).
First, the SEC enforces laws and regulations that aim to protect investors and maintain fair and efficient markets. It requires companies to provide accurate and timely information to the public, which helps investors make informed decisions. This ensures that corporations are transparent in their financial reporting and reduces the risk of fraudulent activities.
Second, the SEC oversees the registration and regulation of securities firms, including brokerage firms and investment advisors. It sets rules and standards to promote fair practices and prevent misconduct in the investment industry. These regulations help maintain the integrity of Wall Street and build trust among investors.