What is the main purpose of the Securities and Exchange Commission (SEC)?

The main purpose of the Securities and Exchange Commission (SEC) is to protect investors and regulate the securities markets. This function involves ensuring that the securities industry operates fairly and honestly, which includes enforcing regulations that require companies to disclose important financial information. By requiring transparency, the SEC aims to foster trust in the financial markets and provide investors with the necessary information to make informed investment decisions.

In addition, the SEC is responsible for preventing fraud and insider trading, further enhancing confidence in the integrity of the securities markets. The organization also oversees various market participants, including brokerage firms, investment advisors, and mutual funds, ensuring they adhere to legal and ethical standards.

The other options do not accurately reflect the SEC’s primary role. Regulating the financial history of corporations, overseeing consumer goods sales, and enforcing labor laws fall under the purview of different regulatory bodies and are not the focus of the SEC’s mission.