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

The primary function of the Securities and Exchange Commission (SEC) is to regulate the securities industry and protect investors. The SEC was established to oversee the securities markets and ensure that they operate fairly and efficiently. This involves enforcing securities laws, overseeing market participants, such as brokers and investment advisors, and ensuring that investors have access to important financial information to make informed decisions.

By regulating the securities industry, the SEC aims to promote transparency and prevent fraud, thus fostering investor confidence in the financial markets. This regulatory function is crucial for maintaining the integrity of the financial system and providing investors with a level playing field. The SEC's role is foundational for a well-functioning capital market, where investors can trust that the information they receive is accurate and that they are protected from manipulative practices.

The other options, while relevant in a broader business context, do not align with the SEC's primary purpose. The enforcement of tax regulations pertains to the Internal Revenue Service (IRS), corporate mergers and acquisitions involve various regulatory bodies but are not the main focus of the SEC, and providing loans to small businesses falls outside the SEC's function, as that is typically handled by banks and financial institutions.