What is the role of the Securities and Exchange Commission (SEC)?

The Securities and Exchange Commission (SEC) is primarily responsible for regulating the securities industry, which includes monitoring the stock market and enforcing laws related to stocks and bonds. This role is crucial as it helps to ensure transparency and fairness in the financial markets, protecting investors from fraudulent practices and ensuring that public companies provide accurate information. By overseeing securities transactions and the overall market, the SEC works to maintain the integrity of the financial system.

In contrast, the other options pertain to functions that are more aligned with other regulatory bodies. For instance, the regulation of insurance policies falls under the jurisdiction of state insurance departments rather than the SEC. The supervision of all financial transactions is broader than the SEC's mandate, which specifically targets securities. Lastly, while the SEC does deal with matters of financial and investment standards, it does not specifically implement insurance policy standards, which are managed by other regulatory authorities.