Question

Why was the Securities Exchange Commission (SEC) created?

Answer 1

Securities Exchange Commission (SEC) created to Regulate the stock market .

Explanation:

Securities and Exchange Commission was created to regulate the stock market of the USA. It stands as a watchdog which surveys over security transactions to stop fraud and deception. The main motto of the SEC is said to be the prevention of deceptive and manipulative fraudulent practices of the stock market and also the monitoring of the takeover of corporate companies in the financial market.

Generally, the issue of securities to investors happens over the internet or in the mail. SEC checks whether the firm selling such securities are registered with SEC or not. Registration with SEC ensures that the firm issuing such securities are not engaged in any fraudulent activities.