FRM Financial Risk Manager Practice Test

The SEC is an independent agency of the U.S. government which holds primary responsibility for:
1. Regulating the securities industry, the nation’s stock exchanges, and option exchanges.
2. Enforcing the federal securities laws.
3. Regulating other electronic securities markets.

Key Takeaway: The SEC requires that public companies and their managers submit quarterly and annual financial reports that outline the previous year’s operations and next year’s plans. It will bring about information transparency for investors in order to make rational decisions.