Question

What is the role of the Securities and Exchange Commission (SEC)? How does it influence the economy?

Answer 1

The role of the Securities and Exchange Commission (SEC) is to provide transparency in the financial performance of US companies.

Further Explanation:

The function of SEC are maintaining fair and orderly security market. It also facilitates capital formation. It was formed in 1934 as the federal regulator of the security market. It promotes full public disclosure. It also protects investors against fraudulent and manipulative practices in the market. It monitors corporate takeover action. It approves the registration statements for book runners. Issues of securities that are offered in interstate commerce must be registered with SEC. Capitalism and communism are two different political and economic ideologies. They never go together. One major difference is about the means of production. In communism, the community owns the means of production. The profit is shared equally among all the people in communism. But in capitalism profit belongs to the private owners only. Private party controls the resources in the capitalism. In the communism, it is the society which controls the means of production. Capitalism supports some level of government and influences the economy. Capitalism is the best way to distribute the resources but the government must be present to protect the property rights. The macroeconomics forces in the business cycle require government intervention to smooth the functioning of the market. They support fiscal and monetary policy. Under socialism, the government owns the means of production and it directly affects the economic activity towards the political goals.

Learn More:

1. as economic theories, socialism and communism sought to brainly.com/question/412148

2. give me four contributory factors that lead to poverty in the community brainly.com/question/2936444

Answer Details:

Grade: High School

Chapter: Security and Exchange Commission

Subject: Social Science

Keywords: Fair, orderly security market, capital formation, public disclosure, means of production, property rights, intervention, fiscal, monetary policy

Answer 2

The role of the Securities and Exchange Commission (SEC) is to provide transparency in the financial performance of US companies. It ensures that investors can obtain accurate and consistent information on corporate profitability, which is the ability of a company to generate sufficient profits.

The benefit is the remaining income after all costs are paid.

It influences the economy by maintaining confidence in the US stock market. That is critical for the proper functioning of the American economy.

Both communism and capitalism are a form of social organization, which are associated with trade and industry in the economy and discuss ownership of property.

In capitalism, the distribution of wealth is unequal, because the rich get richer, while the poor become poorer.

On the other hand, in communism, there is an equitable distribution of wealth, but it does not allow individuals to have personal property.

Capitalism holds in economics that government intervention must be reduced to its minimum expression. It should only be in charge of the legal system that guarantees the respect of private property, the defense of civil and political rights, the control of internal and external security, and eventually the implementation of policies to guarantee the free functioning of markets.

Communism is the government exercised by a single party that represents the people and manages all production assets: companies, factories, tools, etc., exercising strict control over the social, economic and political activities of society.