ITB. Government and Financial Market. SY 23/24

• In this presentation, we'll discuss the roles and functions of two important government agencies, the FDIC and SEC, and how they impact economic stability and investor protection.

• Businesses raise money to invest in themselves.

• Creditors lend money with hopes of receiving a return.

• Investors buy stocks expecting growth and returns in the form of dividends and capital gains.

Conduct an internet search and write the definition or description for FDIC and SEC on your notes.

​

​Internet Search

FDIC

• The FDIC is a government agency that was created to maintain stability and public confidence in the nation's financial system.

• Its main function is to:

  • insure deposits in banks and savings associations.

  • protect depositors against the loss of their money if a bank fails.

• FDIC plays a crucial role in promoting economic stability by preventing bank runs and ensuring that people have confidence in the banking system.

Functions of the FDIC. Cont...

The SEC (Securities and Exchange Commission)

• The SEC is another important government agency responsible for:

  • protecting investors

  • maintaining fair and efficient markets,

  • and facilitating capital formation.

• The SEC regulates the securities industry, which includes stocks, bonds, and other investment products.

• The SEC ensures that companies provide accurate and timely information to investors, so they can make informed decisions.

Functions of the SEC. Cont...