At its core, regulation is aimed at preventing malpractice and safeguarding public welfare. In the financial sector, for example, regulators like the Securities and Exchange Commission (SEC) in the United States are tasked with overseeing the securities industry to protect investors. They enforce laws that ensure transparency and fairness in the market, thus helping to prevent fraudulent practices. This protection fosters trust in financial markets, encouraging both individual and institutional investment, which is vital for economic growth.