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FIN 370 Week 1 dq2

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FIN 370 Week 1 dq2
DQ 2 - Discuss the three primary roles of the SEC? How does the Sarbanes Oxley Act
augment the SEC’s role in managing financial governance?
Answer There are mainly three primary roles of the U. S. Securities and Exchange
Commission (SEC)
1. Protect investors The primary responsibility of SEC is to provide security in order to
protect the investors so that business practices are transparent and legal in terms of being
accessible to the investors of a corporation as well as to the public.
2. Maintain fair, orderly, and efficient markets Another primary responsibility of SEC is to
police the Wall Street and to maintain a fair business activities. It makes secure that
whether trades are legal or having any irregularities and hence irregularities and frauds
are monitored in order to secure business trade activities.
3. Facilitate capital formation - the U. S. Securities and Exchange Commission (SEC) also
provide supporting innovation for the investors in order to facilitate capital information.
The Sarbanes Oxley Act of 2002 was created by U.S. Congress in order to regulate the fraudulent
accounting activities by corporations around U.S. and protect the investors from any type of
scandals happening. After implementation of this SOX act, the Securities and Exchange
Commission (SEC) got very tougher regulatory and enforcement powers in order to prevent any
accounting fraud and now SEC can monitor, regulate and maintain fair business activities with
the help of new standards of corporate transparency and accountability provided by SOX act
2002 .

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FIN 370 Week 1 dq2 DQ 2 - Discuss the three primary roles of the SEC? How does the Sarbanes Oxley Act augment the SEC’s role in managing financial governance? Answer – There are mainly three primary roles of the U. S. Securities and Exchange Commission (SEC) 1. Protect investors – The prima ...
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