ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The SEC is a government organization that sets rules and regulations regarding the issuance, marketing, and trading of securities. The SEC is also charged with protecting investors.

Detailed explanation-2: -The Commission seeks to detect potential problems or issues in the securities markets early and prevent violations of federal securities laws. If violations occur, the SEC alerts investors to possible wrongdoing and takes prompt action to halt and sanction the misconduct.

Detailed explanation-3: -The Division is responsible for detecting and investigating a wide range of potential violations of the federal securities laws and regulations. The securities laws prohibit fraudulent conduct both criminally and civilly, but the Commission is responsible only for civil enforcement and administrative actions.

Detailed explanation-4: -The Securities and Exchange Commission oversees securities exchanges, securities brokers and dealers, investment advisors, and mutual funds in an effort to promote fair dealing, the disclosure of important market information, and to prevent fraud.

Detailed explanation-5: -People engaged in securities sales and trading must put investors’ interests first and treat them fairly and honestly. The SEC ensures this by overseeing the key players in the securities industry, including exchanges, broker/dealers, advisers, funds, and rating agencies.