Which item is a regulatory body that oversees securities markets and financial reporting?

• A. GAAP
• B. SEC
• C. Audits
• D. Laws

Answer: (B)

Regulatory oversight of securities markets and financial reporting is handled by an agency specifically tasked with enforcing securities laws and maintaining fair markets. This agency oversees stock exchanges, brokers, investment advisers, and requires publicly traded companies to disclose accurate financial information through regular filings. That makes it the regulator responsible for both market conduct and financial reporting to investors.

GAAP is the set of accounting standards used to prepare financial statements, not a regulator. Audits are the independent reviews of those statements, not a governing body. Laws are the rules enacted by government, providing the framework, but they aren’t the single regulatory entity.