What securities regulatory agency aims to protect investors?

What securities regulatory agency aims to protect investors?

• A. FINRA
• B. NFA
• C. FASB
• D. SEC

Answer: (D)

The Securities and Exchange Commission (SEC) is the correct answer because its primary mission is to protect investors and maintain fair, orderly, and efficient markets. The SEC oversees securities transactions, activities of financial professionals, and mutual fund trading to ensure that investors can make informed decisions based on accurate and timely information. It regulates the securities industry and enforces securities laws, protecting investors from fraud and ensuring that they have access to necessary information about the companies in which they invest. In contrast, other organizations, while related to finance and investing, have different roles. The Financial Industry Regulatory Authority (FINRA) focuses on regulating brokerage firms and exchange markets, the National Futures Association (NFA) regulates the futures trading industry, and the Financial Accounting Standards Board (FASB) sets accounting standards but does not directly focus on investor protection. These roles are important, but they do not encompass the comprehensive investor protection mandate that the SEC fulfills.

The Securities and Exchange Commission (SEC) is the correct answer because its primary mission is to protect investors and maintain fair, orderly, and efficient markets. The SEC oversees securities transactions, activities of financial professionals, and mutual fund trading to ensure that investors can make informed decisions based on accurate and timely information. It regulates the securities industry and enforces securities laws, protecting investors from fraud and ensuring that they have access to necessary information about the companies in which they invest.

In contrast, other organizations, while related to finance and investing, have different roles. The Financial Industry Regulatory Authority (FINRA) focuses on regulating brokerage firms and exchange markets, the National Futures Association (NFA) regulates the futures trading industry, and the Financial Accounting Standards Board (FASB) sets accounting standards but does not directly focus on investor protection. These roles are important, but they do not encompass the comprehensive investor protection mandate that the SEC fulfills.