Which agency regulates the stock market?

• A. Federal Deposit Insurance Corporation
• B. Securities and Exchange Commission
• C. Social Security Administration
• D. Federal Bureau of Investigation

Answer: (B)

The main idea here is that the government oversees and enforces rules for how financial markets operate to protect investors and keep trading fair. The agency that handles regulating the stock market is the Securities and Exchange Commission. It was created in 1934 after the stock market crash of 1929 as part of New Deal reforms. The SEC oversees stock exchanges, brokers, and public companies, and it enforces securities laws and disclosure requirements so investors have reliable information and markets run honestly.

The Federal Deposit Insurance Corporation focuses on insuring bank deposits and supervising banks, not regulating the stock market. The Social Security Administration runs the nation’s retirement program, not market activities. The Federal Bureau of Investigation enforces laws and investigates crimes, including financial crimes, but it does not regulate or oversee stock market operations—that’s the SEC’s job.