CISI Professional Practice Exam 2025 – Complete Prep Guide

The role of the Securities and Exchange Commission (SEC) is centered around the regulation of securities and the protection of investors. The SEC is a governmental body whose primary mission is to ensure that the securities markets operate fairly and transparently. This regulation involves enforcing laws against market manipulation and insider trading, thereby promoting a level playing field for all investors.

By overseeing and enforcing compliance with securities laws, the SEC aims to maintain confidence in the financial markets, which is crucial for economic growth. The SEC also provides education to investors about the risks involved in investing in securities and offers guidelines aimed at protecting them from fraudulent practices.

The other options do not align with the SEC's mandate. For instance, guaranteeing profits for all investors contradicts the inherent risks in investing, while facilitating insider trading would undermine market integrity. Promoting deregulation also does not fit with the SEC’s focus, which is more about maintaining and enforcing rules to protect investors and ensure market integrity rather than reducing regulations.