What role does the U.S. Securities and Exchange Commission (SEC) play in mergers and acquisitions?

The U.S. Securities and Exchange Commission (SEC) plays a crucial role in mergers and acquisitions by regulating securities transactions and ensuring that accurate information is disclosed to investors. This regulatory body is responsible for enforcing federal securities laws and maintaining fair and efficient markets. Specifically, in the context of M&A, the SEC requires companies involved in mergers and acquisitions to file detailed disclosures that provide material information about the transaction. This includes financial statements, information on risks, and descriptions of the deal structure, allowing shareholders and potential investors to make informed decisions.

The SEC's oversight helps prevent fraudulent activities and ensures that all parties involved have access to necessary information, thereby promoting transparency in the M&A process. This regulation helps maintain investor confidence and protects the integrity of the financial markets, making option B the correct choice. Options that suggest roles such as developing financial strategies, facilitating negotiations, or providing financial advice to companies do not accurately reflect the SEC's primary functions, which specifically focus on regulation and disclosure in the securities markets.