The interests of shareholders must come first and they must be treated fairly and honestly by those who sell and trade securities. By monitoring the major participants in the securities market, such as exchanges, brokers/dealers, advisors, funds, and rating agencies, the SEC makes sure of this.
There are three key parts to the purpose of the US Security and Exchange Commission.
They uphold a fair, regulated, and effective market, safeguard investors, and promote capital formation.
Corporations that openly trade stocks are subject to rules that SEC has put in effect. These laws address the fact that broker-dealers, public companies, as well as some individuals, are all obliged to file reports with SEC on a regular basis. These investors and financial experts rely primarily on the information provided in these filings with the SEC to learn more about the firms they are thinking of investing in.
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