What is the primary role of the Securities and Exchange Commission (SEC)?

The primary role of the Securities and Exchange Commission (SEC) is to protect investors and maintain market integrity. The SEC is a federal regulatory agency responsible for enforcing securities laws and regulating the securities industry, which includes stock and options exchanges, securities brokers, and dealers. Its main objectives are to ensure that investors receive essential information about securities being offered for public sale, which helps them make informed decisions and promotes fair trading practices in the securities markets.

Additionally, the SEC works to prevent fraud and misrepresentation in the securities industry, ultimately fostering trust in the financial markets. This role is crucial because a trustworthy and transparent market supports overall economic growth and stability, providing confidence to individual and institutional investors alike.

The other choices do not appropriately reflect the SEC’s primary mission. Regulating interest rates in the banking system, overseeing educational institutions, and enforcing tax laws are not functions of the SEC, as they fall under different regulatory bodies and areas of government responsibility.