What is a key aspect of the SEC's responsibilities?

The key aspect of the SEC's responsibilities is enforcing laws against market manipulation. The Securities and Exchange Commission (SEC) was established to protect investors, maintain fair and efficient markets, and facilitate capital formation. A significant part of its mission is to enforce securities laws to prevent fraudulent activities and ensure that the markets operate transparently and equitably. This includes monitoring trading activity for signs of manipulation, such as insider trading or misleading information disseminated to the public.

By focusing on market manipulation, the SEC aims to uphold the integrity of the financial markets, which in turn fosters investor confidence. This enforcement role is critical for maintaining the trust that is essential for the functioning of capital markets, as it ensures that all participants can make informed decisions based on accurate and complete information.