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SEC-FM Ass 1

The Securities and Exchange Commission (SEC) plays a crucial role in the Philippine financial markets by ensuring market stability and protecting investors. Its responsibilities include overseeing investment instruments, enforcing financial reporting standards, and conducting market surveillance to prevent manipulation. Additionally, the SEC promotes investor education to foster trust and informed decision-making, supporting sustainable market development.

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9 views

SEC-FM Ass 1

The Securities and Exchange Commission (SEC) plays a crucial role in the Philippine financial markets by ensuring market stability and protecting investors. Its responsibilities include overseeing investment instruments, enforcing financial reporting standards, and conducting market surveillance to prevent manipulation. Additionally, the SEC promotes investor education to foster trust and informed decision-making, supporting sustainable market development.

Uploaded by

sarahnicolejaconesbarsubia
Copyright
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We take content rights seriously. If you suspect this is your content, claim it here.
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Name: Sarah Nicole J.

Barsubia 02/03/2025

Role of the Securities and Exchange Commission in the Stock Market

The Philippine financial markets gain from supervision by their main regulatory authority, the
Securities and Exchange Commission, which is vital for ensuring market stability and equity. As Remo
(2021) describes, the core mission of this organization involves safeguarding market participants while
enabling effective capital flow within the country's financial system.

Among its primary duties, the regulatory authority manages the documentation and oversight of
investment instruments, companies issuing public shares, and collective investment programs. Mendoza
(2020) states that the commission mandates adherence to financial reporting standards and transparency
obligations, fostering a setting where unethical behavior encounters substantial obstacles.

Market surveillance is another essential component of the commission's responsibilities, as


highlighted by Cabacungan (2022), who explains that it proactively examines possible trading infractions
and attempts at market manipulation. By implementing strict enforcement measures, the regulatory
agency showcases its dedication to maintaining market integrity and safeguarding the interests of
participants.

Investor protection goes beyond enforcement and encompasses extensive educational programs.
Remo (2021) emphasizes the commission's role in creating and executing financial awareness initiatives
aimed at equipping market participants with the knowledge essential for making informed investment
choices. This educational aspect is especially important in the context of the Philippines, where the
growth of markets significantly depends on fostering and sustaining investor trust.

The regulatory structure set by the Securities and Exchange Commission therefore acts as a
foundation for the growth of the Philippine market. By utilizing a comprehensive strategy that includes
supervision, regulation, and instruction, the commission creates a setting that supports sustainable
market development while protecting the interests of participants.

References:
Cabacungan, G. (2022). SEC moves to stop stock market manipulation. Philippine Daily Inquirer. Retrieved
from https://business.inquirer.net/342860/sec-moves-to-stop-stock-market-manipulation
Mendoza, R. (2020). The role of the Securities and Exchange Commission in the Philippines. The Manila
Times. Retrieved from https://www.manilatimes.net/2020/10/23/business/business-top/the-role-of-the-securities-
and-exchange-commission-in-the-philippines/782407
Remo, A. (2021). SEC: Regulator, facilitator, and educator. Philippine Daily Inquirer. Retrieved from
https://business.inquirer.net/320953/sec-regulator-facilitator-and-educator

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