Question

What are the major functions of the Securities and Exchange Commission?

A) Enforcing securities laws and regulations
B) Protecting investors
C) Facilitating fair and efficient capital markets
D) Regulating corporate executive compensation

Answer 1

The Securities and Exchange Commission (SEC) has three major functions: enforcing securities laws and regulations, protecting investors, and facilitating fair and efficient capital markets.

Step-by-step explanation:

The Securities and Exchange Commission (SEC) has several major functions:

1. Enforcing securities laws and regulations: The SEC is responsible for enforcing federal securities laws, such as the Securities Act of 1933 and the Securities Exchange Act of 1934. They take action against individuals or companies that violate these laws.
2. Protecting investors: The SEC aims to protect investors by ensuring that they have access to accurate and complete information about securities being offered for sale. They also work to prevent fraud and other abusive practices in the securities market.
3. Facilitating fair and efficient capital markets: The SEC's role is to promote fair and efficient capital markets, which provide opportunities for companies to raise capital and for investors to buy and sell securities.

The regulation of corporate executive compensation is not one of the major functions of the SEC.