What role does the Securities and Exchange Commission (SEC) play?

The Securities and Exchange Commission (SEC) serves a critical function in maintaining the integrity of the financial markets by regulating the securities industry to protect investors. This includes overseeing the activities of securities brokers, dealers, and investment advisors, ensuring that they adhere to fair practices and transparency. The SEC also requires publicly traded companies to disclose financial information, which allows investors to make informed decisions. By enforcing these regulations, the SEC helps to minimize the risk of fraud and market manipulation, ultimately fostering confidence in the financial system.

The other options do not accurately reflect the SEC's responsibilities. Managing the stock market directly is not within its purview; rather, the SEC's role is more about regulating market participants. Providing loans to struggling firms is primarily a function of financial institutions or government programs, not the SEC. Likewise, issuing currency is a task conducted by the U.S. Department of the Treasury and the Federal Reserve, not the SEC.