What was the purpose of the Securities and Exchange Commission (SEC) established during the New Deal?

The Securities and Exchange Commission (SEC) was established as part of the New Deal in response to the 1929 stock market crash and the subsequent Great Depression. Its primary purpose was to regulate the stock market and protect investors. By enforcing securities laws, the SEC aimed to promote transparency, fairness, and efficiency in the financial markets. One key function of the SEC is to oversee the securities industry, ensuring that public companies provide accurate financial information and that trading practices are fair.

This oversight was crucial in restoring public confidence in the stock market, as fraud and unethical practices had contributed to the economic collapse. The SEC has continued to play a significant role in maintaining market integrity and protecting investors from financial wrongdoing, which aligns with its foundational purpose established during the New Deal era.