What is the role of the Securities and Exchange Commission (SEC)?

The Securities and Exchange Commission (SEC) plays a critical role in the financial system, specifically focusing on the regulation of the securities industry. This involves overseeing various aspects of the stock market and ensuring that investors are provided with adequate protection. The SEC's primary mission is to maintain fair, orderly, and efficient markets, which it achieves by enforcing securities laws designed to promote transparency and reduce fraud.

The SEC requires public companies to disclose important financial information, making it easier for investors to make informed decisions. By enforcing regulations that promote full disclosure, the SEC helps foster investor confidence and encourage participation in the markets. Through its oversight, the SEC not only protects investors from unethical practices but also aims to ensure that the markets operate smoothly, thus contributing to overall economic stability.

The other options, such as regulating commercial banking or overseeing the real estate market, fall outside the SEC's jurisdiction and responsibilities. The SEC is specifically focused on matters related to securities, which include stocks, bonds, and other investment vehicles. It does not facilitate international trade, as this is typically the domain of trade and commerce departments or organizations. Therefore, the correct answer highlights the SEC’s essential function in regulating the securities industry and providing investor protection.