SIE STC USA Greenlight Exam 1 Practice

The primary role of the SEC (Securities and Exchange Commission) is to regulate securities transactions in order to protect investors, maintain fair and efficient markets, and facilitate capital formation. This involves overseeing the securities industry, including firms and professionals like brokers and investment advisors, ensuring that all market participants adhere to the laws and regulations surrounding the issuance and trading of securities. The SEC's key functions include enforcing securities laws, reviewing corporate filings, overseeing securities exchanges, and overseeing the activities of self-regulatory organizations.

Monitoring inflation rates, managing federal tax collections, and overseeing the Federal Reserve System, while important governmental functions, fall under the jurisdiction of different federal agencies and are unrelated to the SEC's mandate regarding the securities market. Thus, the focus on regulating securities transactions accurately reflects the core responsibilities of the SEC.