What is the role of the Securities and Exchange Commission (SEC)?

The role of the Securities and Exchange Commission (SEC) centers on overseeing the securities markets and ensuring that investors are protected. The SEC is a U.S. government agency that enforces laws against market manipulation and fraud, promoting fairness and transparency in the securities industry. By regulating securities exchanges, brokers, and dealers, the SEC aims to maintain efficient markets and safeguard the interests of investors. This includes requiring public companies to disclose financial and other significant information, allowing investors to make informed decisions.

The other options do not accurately represent the core functions of the SEC. Issuing stock market predictions is not a regulatory function but rather an activity performed by analysts and financial institutions. Determining the value of mutual funds is typically the responsibility of the fund managers and independent valuation firms rather than a regulatory body. Facilitating international trade falls outside the SEC's mandate, as it is primarily focused on securities regulation within the United States.