How is the stock market regulated?

The stock market is regulated by several entities, including the Securities and Exchange Commission (SEC), the Financial Industry Regulatory Authority (FINRA), and various stock exchanges themselves. The SEC is responsible for enforcing federal securities laws, regulating exchanges and brokers, and protecting investors. FINRA acts as a self-regulatory organization, overseen by the SEC, and regulates broker-dealers and their employees. The stock exchanges, such as the New York Stock Exchange and Nasdaq, also have their own rules and regulations that must be followed by listed companies and their shareholders. Overall, these regulatory bodies work together to ensure fairness and transparency in the stock market and protect investors from fraud and other unethical activities.

This mind map was published on 18 April 2023 and has been viewed 53 times.