What is one of the primary functions of the SEC?

The primary function of the SEC, or the Securities and Exchange Commission, is to maintain fair and efficient markets. This involves regulating the securities industry to protect investors, maintain orderly market conditions, and facilitate capital formation. The SEC enforces securities laws to ensure that both issuers of securities and the markets themselves operate in a manner that is transparent and fair. This mission is essential for fostering public confidence in the financial markets, which in turn encourages investment and economic growth.

The other options, while they pertain to important activities within the financial industry, do not encompass the SEC's central role. Financial audits are typically conducted by independent auditors rather than by the SEC. Additionally, while the SEC may have an oversight role in the context of mergers and acquisitions, it does not directly approve these activities; rather, it ensures that the process adheres to relevant laws and regulations. Lastly, while the SEC does promote investor education as a part of its mandate, it is not its primary function like maintaining fair market practices.