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

The primary role of the Securities and Exchange Commission (SEC) is to regulate the securities industry and protect investors. Established in 1934, the SEC was created in response to the stock market crash of 1929 and the Great Depression to restore public confidence in the financial markets. It does this through enforcing federal securities laws, overseeing the securities industry, and requiring disclosure of important financial information to ensure that investors can make informed decisions.

The SEC's regulatory framework aims to prevent fraud, insider trading, and misleading information about securities, thereby fostering fair and efficient markets. This includes overseeing stock exchanges, securities firms, and brokerage firms, as well as ensuring that public companies disclose their financial statements and other material information to promote transparency.

While the other options touch on aspects of the financial markets, they do not encapsulate the SEC's core mission. For example, promoting new securities can occur as a function of the market, but it is not the SEC's primary responsibility. Assisting investors in personal investment decisions might be a beneficial outcome, but it is not the SEC's defined role; rather, it focuses on protecting investors at a regulatory level. Additionally, sanctioning companies for violations related to patent laws falls outside the SEC's jurisdiction, as patent law is administered