The SECs Role in Protecting Investors and Navigating Market Volatility

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The United States government agency in charge of the countrys securities business is the Securities and Exchange Commission (SEC). It keeps an eye on both transactions and the acts of financial experts. Its goals are to uphold fairness, integrity, and transparency; stop fraud and other dishonest behavior; and guarantee efficient and well-ordered markets (SEC.gov | HOME, 2017). The SEC is tasked with a variety of duties under federal securities laws and regulations, including the following: overseeing securities trading in U.S. equity markets, keeping an eye on the U.S. fixed-income market. Other responsibilities include examining the financial disclosures and statements of public companies, supervising registered market participants and keep an eye on securities exchanges, credit rating and clearing organizations, and other entities.

The fact that American families own $38 trillion worth of stocks, or more than 59 percent of the U.S. equity market, directly or indirectly through mutual funds, retirement accounts, and other assets is reflected in the SECs focus on Main Street investors (SEC.gov | HOME, 2017). The federal securities rules that the SEC is responsible for enforcing are founded on the clear-cut idea that everyone should be treated equally and have access to information about investments and the people who sell them. In order to accomplish this, they mandate that public companies, fund and asset managers, investment experts, and other market participants routinely disclose significant financial and other information (SEC.gov | HOME, 2017). This gives investors the timely, accurate, and complete information they need to feel confident and well-informed when deciding when or where to invest. By zealously upholding federal securities laws, the SEC defends investors by holding violators accountable and discouraging further misbehavior.

The year 2022 saw one of the most unpredictable stock markets ever. The Nasdaq 100 has dropped by about 30% YTD, while the S&P 500 has lost close to 20% so far YTD (DeGalbo, 2022). Growth stocks have also suffered, with many down 50 to 80% year to date (DeGalbo, 2022). The current volatility has been linked to a wide range of variables. The market is in a tailspin due in large part to the inflation rates, which are increasing year after year (DeGalbo, 2022). The ongoing conflict in Ukraine is a significant contributing cause to market volatility (DeGalbo, 2022). Markets dislike uncertainty and instability, both of which are exacerbated by these conflicts, and they surely do not like any of those things.

References

DeGalbo, A. (2022). Why the Stock Market Has Been So Volatile in 2022. Entrepreneur. Web.

SEC.gov | HOME. (2017). Web.

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