Role of the SEC in Corporate Governance

Very Easy Corporate Governance Regulatory Environment

In the realm of corporate governance, various regulatory bodies establish rules and guidelines to ensure ethical practices and protect stakeholder interests. One such regulatory body in the United States is the Securities and Exchange Commission (SEC). The SEC was created to regulate securities markets, prevent fraud, and enforce securities laws.

Which of the following statements correctly describes the primary role of the SEC in the corporate governance framework?

The SEC primarily focuses on the enforcement of tax regulations for corporations.

The SEC is responsible for creating accounting standards for public companies.

The SEC oversees and regulates securities markets to protect investors and maintain fair markets.

Hint

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