Western Governors University (WGU) BUS2060 D078 Business Environment Applications I: Business Structures and Legal Environment Pre-assesment Practice Exam

The Securities and Exchange Commission (SEC) is the primary agency responsible for enforcing federal securities laws and regulating the securities industry in the United States. The SEC's mission includes protecting investors, maintaining fair and efficient markets, and facilitating capital formation. It is tasked with overseeing the securities exchange, regulating stock market activity, and ensuring that corporations provide accurate financial information to the public.

The SEC also implements rules and regulations that govern the security trading practices, enforcing compliance among market participants, such as brokers, dealers, and investment advisors. This level of oversight is crucial to fostering trust in the financial system and ensuring that investors have access to the information they need to make informed decisions.

Other governmental and regulatory bodies mentioned have different functions: the Federal Trade Commission primarily deals with consumer protection and antitrust issues, the Financial Industry Regulatory Authority focuses on the regulation of brokerage firms and exchange markets, and the Internal Revenue Service handles tax collection and tax law enforcement. None of these agencies have the same level of authority over securities laws as the SEC, which is why it is the correct answer.