Role of SEC in Corporate Governance

Easy Corporate Governance Regulatory Environment

In the context of corporate governance, regulatory frameworks play a critical role in ensuring that companies operate ethically and transparently. One important regulatory body in the United States is the Securities and Exchange Commission (SEC). The SEC establishes rules and guidelines that publicly traded companies must follow, particularly concerning financial reporting and disclosure.

Which of the following statements correctly describes a primary role of the SEC in the regulatory environment?

To facilitate mergers and acquisitions between publicly traded companies.

To protect investors by ensuring that companies provide complete and accurate financial information.

To manage the daily operations of publicly traded companies.

Hint

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